In a decisive move that underscores the volatility of his trade policies, former President Donald Trump announced on Saturday an increase in tariffs on all imports to the United States, raising the rate from 10% to 15%. This announcement came less than a day after the US Supreme Court ruled against the legality of his earlier tariff measures, asserting that he had overstepped his authority and failed to seek necessary congressional approval.
A Defiant Response to Judicial Pushback
In the wake of the Supreme Court’s ruling, which deemed his use of the International Emergency Economic Powers Act (IEEPA) for tariff implementation illegal, Trump expressed his disdain for the justices involved, labelling the decision a “disgrace to the nation.” His response was to invoke a different legal mechanism under Section 122 of the Trade Act of 1974, which permits the president to impose temporary tariffs of up to 15% for a period of 150 days without immediate congressional approval.
Trump’s announcement on his Truth Social platform claimed the new tariffs were aimed at countries that he believes have been “ripping off” the US for years. He stated, “I will be, effective immediately, raising the 10% Worldwide Tariff on Countries… to the fully allowed, and legally tested, 15% level.” However, it remains uncertain whether any official documentation has been signed to validate the immediate implementation of these new tariffs, as a White House fact sheet indicated that the original 10% tariffs were set to take effect at 12.01am ET on 24 February.
International Reactions and Concerns
The announcement has elicited swift reactions from global leaders, particularly in Europe. German Chancellor Friedrich Merz has indicated plans to visit Washington with a unified European stance, warning of the “poison” that such uncertainty breeds in international trade relations. He emphasised that tariffs ultimately harm economies on both sides of the Atlantic and called for an end to the ongoing uncertainty surrounding trade policies.
French President Emmanuel Macron also weighed in, acknowledging the importance of judicial oversight in democracies. He highlighted that France would assess the repercussions of Trump’s tariff increase and underscored the principle of reciprocity in international trade.
The new tariff rate raises significant concerns for countries like the UK, which had previously negotiated a 10% tariff agreement with the US. William Bain, the head of trade policy at the British Chamber of Commerce, stated that the escalation would be detrimental to trade, consumers, and businesses alike, ultimately jeopardising global economic growth.
The Domestic Impact of Increased Tariffs
While Trump’s administration has aimed to bolster US manufacturing through aggressive tariff policies, the reality is that the majority of the tariff burden has fallen on American businesses and consumers. Recent data indicates that approximately 90% of the $130 billion collected in tariffs under the IEEPA has been shouldered by domestic entities, leading to mounting pressure on the federal government for refunds.
Notably, certain products will be exempt from the new tariffs, including essential minerals, metals, and pharmaceuticals, along with goods compliant with the United States-Mexico-Canada Agreement (USMCA). However, the Supreme Court’s ruling does not affect separate industry-specific tariffs imposed on steel, aluminium, lumber, and automobiles, which remain in effect.
Trump’s persistent criticism of the Supreme Court continues to dominate his rhetoric. Following the ruling, he labelled the decision as “ridiculous, poorly written, and extraordinarily anti-American,” expressing disappointment in some justices, including two of his own appointees, Amy Coney Barrett and Neil Gorsuch.
Why it Matters
This latest tariff increase not only exacerbates trade tensions but also reflects a broader struggle between executive authority and judicial oversight in US governance. The implications of Trump’s unilateral decisions extend beyond economic metrics; they threaten to destabilise international relations, complicate trade negotiations, and fuel domestic discontent among businesses and consumers alike. As the political landscape evolves, the repercussions of such policies will resonate throughout the global economy, necessitating a careful reassessment of America’s approach to international trade.
