In a dramatic escalation of the ongoing trade policy saga, former US President Donald Trump has announced plans to impose new global tariffs of 15% on imports into the United States. This move comes in response to a recent Supreme Court decision that struck down his previous import taxes, which he had implemented using a 1977 law known as the International Emergency Economic Powers Act (IEEPA). The court ruled that Trump had exceeded his presidential authority when he introduced sweeping tariffs last year, dealing a significant blow to his trade agenda.
On Friday, Trump initially stated that his administration would replace the invalidated tariffs with a 10% levy on all imported goods. However, the following day he raised the proposed tariff rate to 15%, the maximum allowed under a rarely used provision of the 1974 Trade Act—Section 122. This provision permits the president to impose temporary tariffs for up to approximately five months before needing congressional approval. The 10% tariffs were scheduled to take effect starting Tuesday, February 24, but it remains unclear whether the increased 15% rate will be implemented on the same date. The White House has yet to provide clarification on this point.
The decision to raise the tariff rate followed a close review of the Supreme Court’s ruling, which Trump described as “ridiculous, poorly written, and extraordinarily anti-American.” The court’s 6-3 ruling found that the president’s use of IEEPA to impose global tariffs was unconstitutional. The majority opinion included the court’s three liberal justices, Chief Justice John Roberts—a conservative appointed by George W. Bush—and two Trump-appointed justices, Amy Coney Barrett and Neil Gorsuch. Dissenting were three conservative justices: Clarence Thomas, Brett Kavanaugh, and Samuel Alito.
Trump’s tariffs have been a cornerstone of his economic policy, aimed at encouraging domestic production and reducing the US trade deficit by making imported goods more expensive and less competitive. Yet, despite these efforts, the US trade deficit recently reached a record high of around $1.2 trillion (£890 billion), widening by 2.1% compared with 2024. This development has undercut the administration’s argument that tariffs would significantly improve the balance of trade.
The tariffs collected under IEEPA have already generated at least $130 billion in revenue for the US government, according to the latest data. Following the court’s decision, Trump expressed his disappointment and frustration, going so far as to say he was “ashamed” of certain Supreme Court members and labeling the justices who ruled against his tariffs as “fools.” His strong language highlights the political tension surrounding the ruling and signals potential further conflict between the executive branch and the judiciary.
The Supreme Court ruling has also raised concerns among American businesses and foreign trading partners. Drew Greenblatt, owner of Marlin Steel Wire Products in Baltimore, lamented the decision, saying it was a setback for Americans seeking middle-class manufacturing jobs. Conversely, John Boyd, a soybean farmer from Virginia and founder of the National Black Farmers Association, welcomed the ruling as a victory, stating, “This is a huge win for me and a big loss for the president.”
From an international perspective, the increased 15% tariff has caused uncertainty among countries like the United Kingdom and Australia, which had negotiated 10% tariff agreements with the US. The new tariffs, imposed under Section 122, threaten to override those deals. However, critical sectors such as steel, aluminum, pharmaceuticals, metals, and automotive products are exempt from the new tariffs and are unaffected by the Supreme Court decision, as they were imposed under a separate US trade law.
A White House official confirmed that nations with prior trade agreements, including the UK, would now be subject to the new global tariffs rather than the previously negotiated rates. The UK government, while acknowledging the change, emphasized that Britain’s “privileged trading position with the US” remains intact, particularly in key sectors like steel, aluminum, pharmaceuticals, automotive, and aerospace. The UK expects the US to determine how to handle these agreements moving forward.
British business leaders have expressed concern about the impact of the tariffs. William Bain, head of trade policy at the British Chambers of Commerce, warned that Trump’s response to the Supreme Court ruling could be detrimental to British businesses. He described the new 15% tariffs as “bad for trade, bad for US consumers and businesses,” and predicted they would “weaken global economic growth.”
European leaders have also voiced their unease. French