Donald Trump Hikes Global Tariffs to 15% After Supreme Court Blow; What It Means for World Trade

United States President Donald Trump on Saturday raised his newly announced blanket import tariffs from 10 percent to 15 percent, just a day after the US Supreme Court blocked his earlier tariff framework. The sudden escalation has intensified global uncertainty, leaving companies and foreign governments scrambling to assess how and when they might recover billions of dollars already paid under the now-invalidated system.

Donald Trump to Hike Global tariff to 15% after Supreme Court Ruling

In a post on Truth Social, Trump said the higher 15 percent tariff rate was "effective immediately" and sharply criticised the court's ruling. He described the decision as "ridiculous, poorly written and extraordinarily anti-American," arguing that the justices had wrongly curtailed presidential authority over trade policy and taxation.

Supreme Court Ruling Triggers Fresh Tariff Strategy

On Friday, the Supreme Court ruled by a 6-3 majority that Trump did not have the authority to impose and adjust tariffs unilaterally. The court held that the power to levy taxes rests with the US Congress under the Constitution, effectively cancelling Trump's earlier emergency tariffs imposed on nearly all countries under the International Emergency Economic Powers Act.

Trump responded within hours by invoking a different legal provision. During a news conference, he lashed out at the majority justices, calling them "fools and lapdogs" and an "embarrassment to their families." He then signed an executive order under Section 122 of the Trade Act of 1974, initially imposing a 10 percent universal tariff, which was later raised to 15 percent on Saturday.

Legal Limits on the New 15% Tariffs

The 15 percent tariff announced by Trump represents the maximum rate allowed under Section 122 of the Trade Act. However, this provision places strict limits on duration, allowing such tariffs to remain in force for only 150 days unless Congress grants an extension.

Legal experts have noted that no previous US president has used Section 122 in such a broad manner, making fresh legal challenges likely. It also remained unclear over the weekend whether the White House would issue a revised executive order formally reflecting the higher 15 percent rate.

According to reporting by Reuters, the administration has said that certain exemptions will apply, including for critical minerals, select metals and specific energy-related goods.

15% Trump Tariffs' Impact on International Trade Deals

The Supreme Court ruling has also added confusion for countries that recently negotiated tariff agreements with the US. Diamond noted that while domestic legal victories may lead to refunds inside the US, they do not automatically resolve obligations embedded in bilateral trade deals.

Key tariff arrangements affected include:

Taiwan: The general tariff rate was reduced from 20 percent to 15 percent under a deal that also committed Taipei to purchase around $85 billion worth of US energy, aircraft and equipment.

United Kingdom: Most UK goods face a 10 percent tariff, while higher duties on cars, steel and aluminium were reduced as part of a broader agreement.

Malaysia and Cambodia: Exports from both countries continue to face a 19 percent tariff rate under negotiated agreements, despite the lower universal tariff.

Brazil: With no trade deal in place and an earlier tariff rate of 40 percent, Brazil could temporarily benefit from a reduced 15 percent rate following the court ruling.

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