Trump Raises Global Tariffs to 15% Following Supreme Court Setback

President Donald Trump announced on Saturday that he will elevate global tariffs from 10% to the maximum 15% allowed under Section 122 of the Trade Act of 1974, just one day after the U.S. Supreme Court invalidated his broader tariff authority under the International Emergency Economic Powers Act (IEEPA).[1][3][4] This move, effective immediately via a social media post on Truth Social, aims to counteract what Trump called a “ridiculous, poorly written, and extraordinarily anti-American decision.”[1]

Supreme Court Ruling Shakes Tariff Strategy

The Supreme Court’s 6-3 decision on Friday struck down Trump’s sweeping global tariffs, ruling that IEEPA does not grant the president unilateral power to impose such levies without congressional approval.[1][2][3] The majority emphasized that Congress holds authority over tariffs and taxes, marking a significant check on executive trade powers.[3] Trump responded swiftly by signing a proclamation Friday imposing a temporary 10% tariff on most imports, bypassing IEEPA and invoking Section 122 instead.[1][2]

Section 122 allows the president to levy up to 15% duties for 150 days to address “large and serious” balance-of-payments issues, with tariffs scheduled to begin February 24 at 12:01 a.m.[1][2][3] Exemptions mirror those from the invalidated plan, sparing sectors like energy, pharmaceuticals, autos, and aerospace, as well as goods from USMCA-compliant North American partners.[2] Unlike IEEPA, these tariffs must be “nondiscriminatory,” preventing country-specific favoritism.[2]

Trump’s Saturday announcement escalates this to 15%, the statutory ceiling, stating it will “continue our extraordinarily successful process of Making America Great Again.”[1] Existing tariffs under Sections 232 (national security) and 301 (unfair practices)—including those on steel, aluminum, autos, copper, and softwood lumber—remain unaffected and fully enforced.[1][2]

Trump’s Rationale and Broader Trade Agenda

In his Truth Social post, Trump lambasted the court for enabling countries that have “ripped” the U.S. off for decades, vowing no respite.[1] At a White House press conference Friday, he affirmed that “national security tariffs under Section 232, and existing Section 301 tariffs remain in place, fully in place.”[2] Treasury Secretary Scott Bessent echoed this, projecting “virtually unchanged tariff revenue in 2026” when combining Section 122 with others.[2]

The administration is also launching Section 301 investigations into unspecified countries’ practices, potentially leading to higher targeted tariffs on partners like Japan, the EU, and Canada after months-long probes.[2][3] These apply even to nations with U.S. trade deals, such as the UK, India, Japan, and EU members, potentially overriding negotiated lower rates (e.g., 15% with Japan, 18% with India).[3]

Additionally, Trump extended suspension of the de minimis exemption, applying 10% tariffs (now rising to 15%) to low-value goods under $800, targeting e-commerce from platforms like Shein and Temu.[3]

Economic Impacts and Criticisms

Analysts predict mixed effects. The Tax Foundation estimates the 15% tariff burden at about $700 per U.S. household in 2026, down from $1,000 in 2025 under prior rates, though still elevated compared to pre-Trump levels.[3] Broader projections show all 2026 tariffs raising $1.2 trillion over 2026-2035, tempered by slower growth.[6]

Critics like Erica York of the Tax Foundation label it a “Band-Aid tariff,” limited to 150 days with uncertainty beyond.[3] She warns of “chaos and uncertainty” harming business and growth.[3] Democrats urge congressional involvement, arguing sweeping tariffs demand legislative buy-in per the Constitution.[3] Trump counters that alternatives will generate “more money” and strength.[3]

Internationally, reactions brew. China’s prior countermeasures—15% tariffs on U.S. chicken, cotton, corn, and wheat since March 2025—signal escalation risks.[5] Trump claimed foreign nations are “dancing in the streets” but “won’t be for long.”[3]

What Comes Next?

The 15% tariffs take effect soon, but legal challenges loom given the temporary nature.[1] Updated orders are pending, alongside Commerce Department probes for permanent measures.[1][2] This pivot sustains Trump’s second-term cornerstone: protectionism to revive manufacturing and negotiate better deals.[2][3]

Businesses face planning hurdles amid flux, yet proponents argue it pressures fairer trade.[2] As investigations unfold, global supply chains brace for shifts. Trump’s defiance of the court underscores his resolve, but sustainability hinges on Congress, courts, and retaliation dynamics.

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Original source: NPR News – Trump to raise global tariffs to 15%