In a swift response to a recent Supreme Court decision, former President Donald Trump has announced an increase in tariffs on imports from all nations, raising the rate from 10% to 15%. This escalation comes just a day after the Court ruled that Trump had overstepped his authority in imposing tariffs without congressional approval, igniting a firestorm of criticism from the former president directed at the judiciary.
Tariff Increase Amidst Legal Controversy
On Saturday, Trump took to Truth Social to declare the immediate implementation of the heightened tariff rate, citing a legal framework under the Trade Act of 1974. This legislation allows the president to impose temporary tariffs of up to 15% for a maximum of 150 days without prior approval from Congress. Trump expressed his determination, stating, “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.”
However, the timing of this announcement raises questions. While Trump suggested an immediate effect, a White House fact sheet from Friday indicated that the initial 10% tariffs would not commence until February 24, 2026. The inconsistency has left many wondering about the actual implementation timeline.
International Reactions and Economic Implications
The Supreme Court’s ruling has reverberated globally, prompting responses from key leaders. German Chancellor Friedrich Merz announced plans to visit Washington, aiming to present a unified European stance against the uncertainty surrounding U.S. tariffs. He warned that “the biggest poison for the economies of Europe and the US is this constant uncertainty about tariffs,” emphasising the need for clarity.
French President Emmanuel Macron echoed similar sentiments, asserting that the rule of law is essential in democracies. He cautioned against unilateral decisions that could destabilise international trade, suggesting that France would carefully consider the implications of Trump’s new tariff policy.
William Bain, head of trade policy at the British Chamber of Commerce, articulated concerns that the tariff hike would negatively impact trade and consumer prices. He highlighted the pressing need for stability in transatlantic relations, stating, “Higher tariffs are not the way to achieve that.”
Exemptions and Ongoing Legal Battles
Despite the tariff increase, certain products, including critical minerals and pharmaceuticals, will be exempt. Goods compliant with the United States-Mexico-Canada Agreement (USMCA) from Canada and Mexico will also avoid the new levies. Furthermore, the Supreme Court’s ruling does not affect existing tariffs on steel, aluminium, lumber, and automobiles, which Trump implemented under a different legislative framework.
Trump’s aggressive tariff policies have been a cornerstone of his administration’s approach to reviving American manufacturing. Recent government data indicates that approximately $130 billion has been collected from tariffs under the International Emergency Economic Powers Act (IEEPA), though studies reveal that American businesses and consumers have borne the brunt of these costs, with 90% of tariff payments coming from them. Calls for refunds from businesses affected by the tariffs are growing, but Trump has warned that any reimbursements would likely involve protracted legal disputes.
A Personal Attack on the Judiciary
Trump did not hold back in his criticism of the Supreme Court, describing the 6-3 ruling as “ridiculous, poorly written, and extraordinarily anti-American.” He expressed disappointment with certain justices, including two of his appointees, Amy Coney Barrett and Neil Gorsuch, whom he accused of being disloyal to their constitutional duties. Trump praised the dissenting justices, Brett Kavanaugh, Clarence Thomas, and Samuel Alito, positioning them as defenders of his trade agenda.
At a recent press conference, Trump stated, “I’m ashamed of certain members of the court. Absolutely ashamed for not having the courage to do what’s right for our country,” highlighting the deepening rift between the former president and the judiciary.
Why it Matters
Trump’s latest tariff increase not only escalates tensions in international trade but also raises significant concerns for US businesses and consumers navigating an unpredictable economic landscape. As the legal and political ramifications unfold, the impact of these tariffs could ripple across global markets, affecting everything from pricing to supply chains. The uncertainty introduced by Trump’s aggressive approach to trade policy underscores the delicate balance between national interest and international cooperation, a dynamic that will continue to shape the economic dialogue in the coming months.
