President Donald Trump announced Saturday that he will raise the global tariff rate on imported goods to 15%, escalating his response to a recent Supreme Court decision that struck down much of his previous tariff authority.
The move comes after Trump earlier Friday signed a proclamation imposing a 10% tariff on all imports as part of an effort to maintain pressure on foreign trading partners following the high court’s decision. He confirmed the increase in a social media post, saying the higher rate is “fully allowed and legally tested.”
Supreme Court Setback Sparks Policy Shift
On Friday, the U.S. Supreme Court handed the administration a legal defeat, ruling that the president had overstepped his authority under the International Emergency Economic Powers Act (IEEPA) by imposing broad global tariffs without explicit congressional authorization. The Court reaffirmed that tariff authority is primarily vested in Congress, limiting the executive branch’s ability to unilaterally impose sweeping import taxes under emergency powers.
Trump criticized the ruling as “poorly written,” calling the six justices who opposed the legal rationale for his decision “fools, lapdogs,” “very unpatriotic,” and a “disgrace to our nation.”
Legal Basis for the 15% Tariff
After the Supreme Court ruling, the administration invoked Section 122 of the Trade Act of 1974 to authorize a temporary tariff — originally at 10% — on all imported goods for up to 150 days. That statute allows the president to impose tariffs to address balance-of-payments issues without a full congressional vote. The increase to 15% reaches the maximum rate permitted under that authority.
Market and Political Reactions
Global financial markets reacted cautiously after the announcement, as investors assessed the implications of prolonged elevated tariffs. Analysts noted that uncertainty over trade policy — compounded by the Supreme Court’s decision and subsequent policy shifts — could contribute to volatility in exchange rates and supply chains.
Republican allies of the administration generally praised the tariff increase as a necessary step to counter longstanding trade imbalances, while critics in both parties warned the policy could raise costs for U.S. consumers and provoke retaliatory measures from trading partners.
What Comes Next
The 15% global tariff is temporary under Section 122 and must be revisited or extended by Congress once the 150-day limit expires. The administration has indicated it may pursue additional tariffs under other statutory authorities — including Commerce Department investigations under Sections 301 or 232 of the Trade Act — to sustain parts of its broader trade agenda.
At the same time, businesses that paid tariffs previously invalidated by the Supreme Court may seek refunds — a process that could involve tens of billions of dollars in claims and additional legal action.
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