Trump says he will increase his new global tariffs to 15%

Trump Announces Escalation of Global Tariffs to 15%

President of the United States Donald Trump has declared his intent to raise tariffs on global imports to 15%, following a Supreme Court ruling that invalidated his earlier tax measures. The decision comes after the court overturned his previous 10% import duties, which he had imposed on all goods entering the country. On Saturday, Trump announced on Truth Social that he would boost the rate to the maximum permitted by a seldom-employed trade law, signaling a shift in his economic strategy.

Supreme Court Overturns Previous Tariff Authority

The 6-3 ruling by the US Supreme Court determined that Trump had exceeded his authority in implementing broad global tariffs last year under the International Emergency Economic Powers Act (IEEPA). The court found the president had misused this law, which allowed him to collect over $130bn in tariffs. Trump criticized the decision as “ridiculous, poorly written, and extraordinarily anti-American,” expressing disappointment with the justices who dissented.

Section 122 of the 1974 Trade Act provides a temporary framework for the 15% tariffs, which could remain in effect for about five months before requiring congressional approval. While the 10% rate was set to take effect on 24 February, it’s uncertain if the increased rate will apply simultaneously. The BBC has sought clarification from the White House.

Trade Implications and Industry Reactions

“It is a setback for poor people in America that had a chance to climb into the middle class with great manufacturing jobs,”

said Drew Greenblatt, owner of Marlin Steel Wire Products. Conversely, John Boyd, a Virginia soybean farmer and founder of the National Black Farmers Association, called the ruling a “huge win for me and a big loss for the president.” He emphasized that Trump’s approach had “no chance” of succeeding.

Allie Renison, a former UK trade adviser, noted that the court’s decision might benefit free trade but could complicate international commerce. She described the new tariffs as creating a “patchwork approach” for businesses. The 15% rate applies broadly, except for exemptions like critical minerals, metals, and pharmaceuticals. Separate tariffs on steel, aluminum, lumber, and automobiles—enacted via other laws—remain unaffected.

UK Trade Deals Remain Intact

Despite the ruling, the UK government stated that its “privileged trading position with the US” would persist. Trade agreements in sectors such as steel, aluminum, and aerospace, which form the bulk of British-US commerce, are not impacted by the new tariffs. William Bain of the British Chambers of Commerce expressed concern over how Trump’s response might affect these relationships.

Trump’s tariff policy is central to his economic agenda, aiming to incentivize domestic production and investment. However, the Supreme Court’s intervention has weakened his influence and challenged his plans for the second term. The trade deficit, which surged to nearly $1.2 trillion this week, underscores the policy’s ongoing significance in US economic strategy.