Washington D.C. - - US President Donald Trump has announced a further escalation in trade tariffs, raising the temporary levy to 15 percent on imports from all countries, less than 24 hours after initially imposing a 10 percent across-the-board tariff. This move follows a Supreme Court ruling that struck down his previous, more sweeping tariff program on .
The initial response to the court's decision saw President Trump announce the 10 percent tariff, but he has now doubled down, invoking a separate law - Section 122 - which allows for tariffs of up to 15 percent. However, this law requires congressional approval to extend the tariffs beyond 150 days, a hurdle that could prove significant given growing public concern over rising prices.
The Supreme Court's ruling, a 6-3 decision, found that President Trump had exceeded his authority when imposing higher tariffs under the International Emergency Economic Powers Act (IEEPA). Chief Justice John Roberts authored the opinion, joined by Justices Neil Gorsuch and Amy Coney Barrett, both Trump appointees, as well as the court's three liberal justices. The ruling effectively limits the president's ability to unilaterally impose broad tariffs based on claims of national economic emergency.
President Trump reacted with strong criticism of the court's decision, publicly expressing his disappointment and questioning the judgment of the justices involved. He vowed to continue pursuing his trade agenda, stating on his social media platform, Truth Social, "I, as President of the United States of America, will be, effective immediately, raising the 10% Worldwide Tariff on Countries...to the fully allowed, and legally tested, 15% level."
The White House has indicated that the Section 122 tariffs will include exemptions for certain critical products, including minerals, metals, and energy resources. The administration also intends to explore other avenues for imposing tariffs, relying on existing statutes that permit import taxes based on national security or unfair trade practice investigations.
The legal basis for the new tariffs remains uncertain. No US president has previously invoked Section 122, and its use is expected to face legal challenges. Trade experts and congressional aides are skeptical that the Republican-majority Congress will extend the tariffs beyond the 150-day period, particularly given polling data indicating increasing public dissatisfaction with the impact of tariffs on consumer prices.
The Supreme Court's decision and President Trump's subsequent actions have drawn reactions from international leaders. French President Emmanuel Macron welcomed the ruling, stating it underscored the importance of checks and balances within democratic systems and the rule of law. German Chancellor Friedrich Merz expressed hope that the decision would alleviate the burden on German businesses and indicated he would raise the issue during an upcoming visit to the United States.
The ruling's impact on existing trade deals is also being assessed. Despite the Supreme Court's decision, the Trump administration maintains that countries with pre-negotiated tariff agreements - such as Malaysia and Cambodia, which currently face rates of 19 percent - will continue to be subject to those rates. This suggests the administration intends to leverage existing agreements even in the absence of the broader authority previously claimed.
Conversely, countries like Brazil, which do not have such agreements and previously faced a 40 percent tariff, could potentially benefit from a reduction to the new 15 percent level, at least temporarily. The situation remains fluid, dependent on the administration’s future actions and potential congressional intervention.
The timing of this trade policy shift comes as President Trump faces increasing scrutiny over the economy. Recent polling data indicates declining approval ratings for his handling of economic issues, with 34 percent approval and 57 percent disapproval as of . Affordability is a key concern for voters, and Democrats are actively blaming the president’s tariffs for contributing to the rising cost of living.
With the midterm elections approaching, the economic impact of the tariffs is likely to become a central issue in the political debate. Democrats need to flip only three Republican-held seats in the House of Representatives to regain a majority, and they are positioning tariffs as a key vulnerability for the president.
The administration’s trade representative, Jamieson Greer, defended the existing trade deals on Fox News, asserting that countries must honor their agreements regardless of the Supreme Court’s ruling. However, the long-term sustainability of these agreements and the broader impact of the new tariffs remain uncertain.
The situation is evolving rapidly, and further developments are expected as the administration navigates the legal and political challenges posed by the Supreme Court’s decision and the implementation of the new tariffs. The coming months will be critical in determining the future of US trade policy and its impact on the global economy.