Trump Raises Global Tariffs to 15% After Supreme Court Ruling on Friday

Global tariffs are now set to rise to 15% after a Supreme Court decision, a significant change from previous rates.
By Newsroom | Business, Politics |

Global Trade Policy Faces New Uncertainty After Presidential Decree

President Donald Trump has announced plans to increase global tariffs to 15 percent, a move that follows a significant Supreme Court decision striking down previous tariff measures. This announcement, made via social media, signals a continued commitment to using tariffs as a trade tool, even as existing policies face legal challenges. The escalation introduces a layer of complexity to international trade relations and domestic business planning.

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  • The Supreme Court's ruling on Friday invalidated tariffs previously imposed under an emergency powers law, affecting duties on goods from nearly every country.

  • President Trump stated his intention to implement new tariffs using a different, though more limited, legal authority.

  • This development has drawn immediate criticism from Democratic lawmakers and prompted discussions about the future of U.S. trade policy.

Timeline of Events

On Friday, the Supreme Court issued a ruling that invalidated a broad set of tariffs President Trump had previously enacted, citing their imposition under emergency powers. This decision effectively ended tariffs applied to nearly all countries.

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In response, President Trump announced on Saturday via social media that he would be raising global tariffs to 15 percent. This new directive utilizes a different legal framework than the one previously struck down by the court.

Read More: Trump Raises Global Tariffs to 15% After Supreme Court Ruling Affects Trade

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The administration has indicated that the new tariffs will be determined and issued over the "next short number of months," with some reports suggesting they could take effect as early as Tuesday. This timeline is subject to further administrative action and legal interpretation.

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Actors Involved

  • President Donald Trump: The primary decision-maker, announcing the tariff increase and challenging the Supreme Court's ruling.

  • The Supreme Court: Issued a 6-3 decision invalidating previously imposed tariffs.

  • Democrats: Have voiced opposition to the new tariff announcement.

  • U.S. Trade Representative Jamieson Greer: Stated the administration would open Section 301 investigations on major trading partners.

  • Business Groups (e.g., U.S. Chamber of Commerce, National Retail Federation): Expressed concerns and called for swift refunds of previously levied tariffs.

  • Trading Partners (e.g., Mexico, Canada, China): Likely to see significant changes in tariff rates, with potential for reduced overall tariffs on some goods.

Key Evidence and Statements

  • President Trump posted on Truth Social: "Please let this statement serve to represent that 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, without retribution (until I came along!), to the fully allowed, and legally tested, 15% level."

  • He also stated that "during the next short number of months, the Trump Administration will determine and issue the new and legally permissible Tariffs, which will continue our extraordinarily successful process of Making America Great Again."

  • U.S. Trade Representative Jamieson Greer indicated that the administration would initiate Section 301 investigations on "most major trading partners" on an "accelerated timeframe."

  • Neil Bradley, chief policy officer at the US Chamber of Commerce, stated: "Swift refunds of the impermissible tariffs will be meaningful for the more than 200,000 small business importers in this country and will help support stronger economic growth this year."

  • The Supreme Court's ruling was a 6-3 decision, with two of President Trump's own appointees voting against the tariffs.

The Supreme Court's decision specifically invalidated tariffs imposed under the International Emergency Economic Powers Act (IEEPA). This ruling affected a broad range of duties applied globally.

  • Tariffs previously enacted under other legal authorities, such as Section 232 (used for steel, aluminum, copper, lumber, furniture, cars, and car parts) and Section 301, were not directly addressed by the Supreme Court's ruling and remain in effect.

  • President Trump's latest announcement suggests the use of a different, "legally permissible," and "legally tested" authority, distinct from IEEPA.

  • It remains unclear if the administration can immediately restart tariffs with a new executive order after the 150-day period following the ruling, or if another executive order would be required.

Impact on Trading Partners and Goods

The newly announced 15 percent tariff, while universal in scope, is expected to result in a major reduction in tariffs for most key trading partners compared to the broad IEEPA tariffs.

  • Tariffs on goods from Mexico, Canada, and China are likely to see a significant decrease in overall rates.

  • Exemptions for CUSMA-compliant goods from Canada and Mexico are stated to still apply.

  • Sector-specific duties, such as those on autos, car parts, and semiconductor chips, which were not covered by the IEEPA ruling, will likely continue under their existing provisions.

  • The administration's plan to open Section 301 investigations could lead to further tariffs if specific trade agreement violations are found.

Business Reactions and Economic Concerns

Business organizations have voiced strong opinions regarding the recent tariff actions and the Supreme Court's decision.

  • Companies and trade groups have indicated their intention to pursue refunds for tariffs paid under the invalidated IEEPA measures.

  • President Trump has suggested that any legal battle over refunds could take years.

  • The U.S. Chamber of Commerce emphasized the importance of "swift refunds" for over 200,000 small business importers.

  • The National Retail Federation has urged for a "seamless process to refund the tariffs."

  • Trump's tariff policy is described as a key element of his economic agenda, aimed at encouraging domestic investment and production.

Presidential Criticism of the Judiciary

Following the Supreme Court's decision, President Trump issued strong personal criticism of the justices.

  • He described the ruling as "deeply disappointing."

  • Trump expressed shame regarding the justices who voted against his tariffs, including two individuals he appointed during his presidency.

  • This marks the first time in his second term that the conservative-majority court has ruled against his use of presidential power in this manner.

Conclusion and Implications

President Trump's announcement to raise global tariffs to 15 percent, following the Supreme Court's invalidation of previous measures, introduces a period of sustained trade policy volatility. While the new tariffs are set to operate under a different legal framework, their long-term impact and the potential for further legal challenges remain subjects of significant interest.

Read More: Senator Kennedy Says Trump Tariffs May Lower Trade Barriers But Cause Uncertainty

  • The administration is expected to issue details on the new tariffs in the coming months.

  • The utilization of Section 232 and Section 301 authorities suggests a continued reliance on these trade instruments.

  • The call for swift refunds by business groups highlights immediate economic concerns for importers.

  • President Trump's public criticism of the Supreme Court's decision underscores the contentious nature of these trade policies.

Sources Used

Frequently Asked Questions

Q: Why did President Trump announce new global tariffs on Saturday?
President Trump announced a new 15% global tariff rate on Saturday. This action followed a Supreme Court ruling on Friday that invalidated previous tariffs imposed under emergency powers.
Q: What did the Supreme Court rule on Friday about tariffs?
The Supreme Court ruled 6-3 on Friday to invalidate tariffs that President Trump had put in place using emergency powers. This decision meant tariffs on goods from nearly all countries were stopped.
Q: How will the new 15% global tariffs affect trading partners like Mexico, Canada, and China?
The new 15% tariffs are expected to lead to lower overall rates for many key trading partners. Tariffs on goods from Mexico, Canada, and China may decrease, and exemptions for goods from Canada and Mexico that meet CUSMA rules will still apply.
Q: What are businesses saying about the Supreme Court's decision and the new tariffs?
Business groups like the U.S. Chamber of Commerce want quick refunds for tariffs paid under the old rules. They say this will help over 200,000 small businesses that import goods.
Q: What legal authority is President Trump using for the new 15% tariffs?
President Trump stated the new tariffs will use a different, 'legally permissible' authority. This is separate from the emergency powers law that the Supreme Court struck down on Friday.