In a decisive move that underscores his contentious relationship with the judiciary, former President Donald Trump has announced an increase in tariffs on imports from all nations, elevating the rate from 10% to 15%. This escalation comes swiftly after the U.S. Supreme Court ruled that Trump had overstepped his authority regarding the original tariffs, which had been enacted under the International Emergency Economic Powers Act (IEEPA). The ruling, which deemed the tariffs illegal without Congressional approval, has sparked a fierce backlash from Trump, who has labelled the justices’ decision as a “disgrace to the nation.”
A Defiant Response to Judicial Authority
The announcement was made via Trump’s Truth Social platform, where he expressed his intent to impose the new tariff rate immediately. “I, as President of the United States of America, will be, effective immediately, raising the 10% Worldwide Tariff on Countries, many of which have been ‘ripping’ the U.S. off for decades,” he wrote, indicating that this increase would be enforced under a separate provision of the Trade Act of 1974. This particular section has never been invoked before and allows the President to impose a temporary tariff of up to 15% for a duration of 150 days, after which Congressional approval would be necessary for any extension.
While Trump’s statement claimed an immediate implementation of the higher tariff, questions linger regarding whether any formal documentation had been executed to confirm this timing. A White House fact sheet released the day prior indicated that the initial 10% tariffs were set to take effect at 12.01 AM ET on February 24.
International Reactions and Economic Implications
The Supreme Court’s ruling has not only stirred domestic outrage but has also caught the attention of international leaders. German Chancellor Friedrich Merz announced plans to visit Washington to present a united European front in response to the ruling, cautioning that ongoing tariff uncertainty could be detrimental to both European and American economies. “The biggest poison for the economies of Europe and the US is this constant uncertainty about tariffs,” he stated emphatically.
French President Emmanuel Macron echoed these sentiments, highlighting the importance of the rule of law within democracies. He remarked, “It is not bad to have a supreme court and, therefore, the rule of law. It is good to have power and counterweights to power in democracies.” Macron also noted that France would evaluate the ramifications of Trump’s new tariff policy and advocated for reciprocal trade practices rather than unilateral actions.
The implications of this tariff hike extend beyond transatlantic relations, creating uncertainty for various nations, including the UK, which had previously aligned with the 10% tariff framework. William Bain, the head of trade policy at the British Chamber of Commerce, expressed concern that this escalation would have negative repercussions for trade and could weaken global economic growth.
Exemptions and Ongoing Legal Battles
While certain products will be exempt from the new tariffs—including critical minerals, metals, and pharmaceuticals—existing industry-specific tariffs on steel, aluminium, lumber, and automobiles remain unaffected by the Supreme Court’s ruling. Trump’s administration has already amassed about $130 billion in tariffs under the IEEPA, but studies indicate that US businesses and consumers are shouldering the brunt of these costs, with approximately 90% of the tariff burden falling on them.
Furthermore, as calls for refunds from businesses grow louder, the former president has made it clear that such reimbursements will only be attainable through a protracted legal process. Trump continues to criticise the Supreme Court’s recent decision, branding it “ridiculous, poorly written, and extraordinarily anti-American,” while singling out justices he perceives as faithful to his agenda.
Why it Matters
Trump’s latest tariff manoeuvre not only reflects his defiance against the judiciary but also raises significant concerns over the future of US trade policy and its global implications. As he seeks to bolster American manufacturing through aggressive tariffs, the uncertainty surrounding these policies could hinder economic stability, both domestically and internationally. The ramifications of this escalation will likely resonate through supply chains and consumer prices, affecting millions as businesses grapple with the unpredictability of the trade landscape. With calls for clarity and consistency growing louder, the question remains: how will the Biden administration respond to this renewed wave of tariffs, and what will it mean for the fragile state of international trade relations?
