Trump Unveils 15% Global Tariffs After Supreme Court Blow
US President Donald Trump has announced plans to impose a 15% global tariff on imports, escalating trade tensions after the US Supreme Court struck down his earlier tariff policy.
The court, in a 6–3 ruling, found that Trump had overstepped his authority by using the 1977 International Emergency Economic Powers Act (IEEPA) to introduce sweeping global tariffs last year. In response, Trump said the administration would invoke Section 122 of the Trade Act of 1974, a rarely used provision that allows temporary tariffs for up to five months without congressional approval.
The new 15% tariff replaces a previously proposed 10% levy that was due to take effect on 24 February. It remains unclear whether the higher rate will be implemented from the same date.
Section 122 permits temporary trade measures, but Congress must approve any extension beyond five months. Certain goods, including critical minerals, metals and pharmaceuticals, are expected to be exempt. Separate tariffs on steel, aluminium, lumber and automotive parts remain unaffected.
The US has already collected at least $130 billion in tariffs under IEEPA. Trump argues the levies are necessary to reduce the trade deficit and boost domestic manufacturing. However, the US trade deficit recently widened 2.1% year-on-year to about $1.2 trillion.
The move has raised concerns among trade partners including the UK and Australia, which had previously negotiated 10% tariff arrangements. European lawmakers are also reconsidering ratification of a US-EU trade deal amid the fresh uncertainty.
Business reactions were mixed, with some manufacturers calling the court ruling a setback, while farming groups welcomed the decision as a check on presidential power.
The development signals a new phase of trade uncertainty, with businesses facing a more complex and fragmented tariff landscape.
