US Raises Global Tariffs to 15% After Supreme Court Ruling

US global tariffs increased from 10% to 15% on February 24, 2026. This change follows a Supreme Court decision and creates uncertainty for UK and EU trade.
By Newsroom | Business, World News |

US President Donald Trump has declared his intention to employ tariffs in a "much more powerful and obnoxious way," following a US Supreme Court decision that reportedly expanded his executive authority on trade. This announcement has triggered confusion and concern among international partners, including the United Kingdom and the European Union, who are seeking clarity on existing trade agreements and the future impact of these policies.

Trump threatens ‘more powerful and obnoxious’ tariffs, amid confusion in UK and EU – business live - 1

Context: A Shifting Trade Landscape

The recent actions and statements by President Trump regarding tariffs have created a period of considerable flux in global trade relations.

Trump threatens ‘more powerful and obnoxious’ tariffs, amid confusion in UK and EU – business live - 2

  • On Friday, February 21, 2026, the US Supreme Court ruled against certain sweeping global tariffs previously implemented by President Trump. This decision, made with a 6-3 majority, involved the use of emergency powers under the International Emergency Economic Powers Act (IEEPA).

  • In response to this ruling, President Trump invoked Section 122 of the 1974 Trade Act, a rarely used provision. This law allows the President to impose tariffs up to a maximum of 15% for a period of 150 days, after which Congressional approval is required for extension.

  • Consequently, the US announced an increase in global tariffs to 15%, a rise from the previous 10% rate.

  • The US Customs and Border Protection (CBP) has stated it will stop collecting tariffs under the emergency powers act as of 12:01 am Eastern US time on Tuesday, February 24, 2026.

Official Statements and Reactions

Statements from the US administration and international bodies reveal a divergence in interpretation and intent.

Trump threatens ‘more powerful and obnoxious’ tariffs, amid confusion in UK and EU – business live - 3

  • President Trump, posting on his Truth Social network, asserted that the Supreme Court ruling, while striking down some tariffs, had "accidentally and unwittingly" expanded his presidential powers. He stated the court had "approved all other Tariffs, of which there are many, and they can all be used in a much more powerful and obnoxious way, with legal certainty, than the Tariffs as initially used."

  • Jamieson Greer, Trump's trade representative, has defended the tariff stance, insisting the president's trade policy has not fundamentally changed and that existing trade deals remain valid. He stated the US would not back out of sealed tariff deals with countries like the UK, EU, Japan, and Switzerland.

  • The European Union (EU), through spokesperson Olof Gill, expressed a need for clear information: "The US needs to tell us precisely what is going on." The EU has also issued a strong statement calling on the US not to renege on the July deal and has described the situation as "pure tariff chaos."

  • In the United Kingdom, officials have stated they are "working with the US to analyse the impact" of the Supreme Court's ruling. The British Chambers of Commerce indicated that the UK might leverage the situation to secure a better long-term trade deal.

Businesses and governments in the UK and EU are grappling with the implications of these developments, facing significant uncertainty.

Trump threatens ‘more powerful and obnoxious’ tariffs, amid confusion in UK and EU – business live - 4

  • The CBP has provided no new information regarding potential refunds for importers who paid tariffs. This lack of clarity is a major concern for businesses.

  • The EU noted that discussions are ongoing and it is an evolving situation, assuring businesses and the public that efforts are focused on protection and national interest.

  • However, William Bain, head of trade policy at the British Chambers of Commerce, remarked, "No one can make sense of it any more – only open questions and growing uncertainty for the EU and other US trading partners."

  • David Henig, director of the UK Trade Policy Project, commented that "the nature of dealing with this US administration is no deal can be expected to last, so all governments will be working out what to do next, or what the deal actually is."

  • India has reportedly delayed sending a trade delegation to Washington due to the "tariffs chaos."

The Supreme Court's ruling and President Trump's subsequent actions have sparked debate about the scope of presidential power in trade policy.

Read More: Tamil Nadu Cabinet Approves ₹72,935 Crore Investments Creating Over 1 Lakh Jobs by Feb 2026

  • President Trump appears to view the ruling as reinforcing his administration's tariff framework, which he considers a key tool in trade policy.

  • Some US lawmakers, such as Democratic Congressman Ted Lieu, have questioned the president's decision, suggesting he is directing anger towards the Supreme Court at the expense of Americans.

  • Experts warn that the White House could potentially shift to broader product-based tariffs or adopt a more stringent approach.

  • The Congressional Research Service has noted that Section 122 of the Trade Act of 1974, now invoked, has never been used before, meaning its language has not been tested in the courts.

Impact on Trade Deals and Global Order

The ongoing tariff disputes risk destabilizing existing trade agreements and the broader global economic framework.

  • Analysis from the Swiss-based trade watchdog Global Trade Alert indicates that on a trade-weighted basis, the UK faces a 2.1 percentage point increase in its average tariff rate, while the EU sees a 0.8 percentage point rise.

  • Some officials in Europe and London have expressed alarm, stating that Trump's new tariff policy could upend trade deals signed with the US last year.

  • However, Jamieson Greer maintains that the trade policy has not fundamentally changed and that trade deals still stand.

  • The UK has already invested significant diplomatic effort to secure preferential treatment, including tariff exemptions on key sectors like steel and automotives, which are expected to remain in place.

Conclusion and Future Outlook

The recent developments surrounding US tariffs have introduced a period of significant unpredictability for global trade. President Trump's assertion of expanded powers and his intention to use tariffs more forcefully, coupled with the Supreme Court's decision, have left international partners and businesses seeking concrete assurances and clear guidance.

  • The US Customs and Border Protection's cessation of tariff collection under the old framework marks a technical shift, but the imposition of new tariffs under Section 122 has introduced a new set of questions.

  • The lack of clarity on potential refunds for previously paid tariffs remains a critical issue for importers.

  • The 150-day limit on the new tariffs under Section 122 means that the need for Congressional approval will become a focal point in the coming months, potentially leading to further policy shifts or extensions.

  • The UK and EU's diplomatic efforts will likely intensify as they seek to preserve existing trade arrangements and mitigate economic impacts.

  • The broader implications for the global trade order are still unfolding, with concerns that continued volatility could hinder economic growth.

Sources

Frequently Asked Questions

Q: Why did the US raise global tariffs to 15% on February 24, 2026?
The US raised global tariffs to 15% after a Supreme Court ruling on February 21, 2026. President Trump used Section 122 of the 1974 Trade Act, which allows for higher tariffs for 150 days.
Q: What did the US Supreme Court rule about tariffs on February 21, 2026?
The Supreme Court ruled against some sweeping global tariffs previously used by President Trump. However, President Trump stated the ruling expanded his executive power on trade.
Q: How does the US tariff increase affect the UK and EU?
The UK and EU are confused and concerned about the new 15% tariffs. They are seeking clarity on existing trade deals and how this change will impact their trade with the US.
Q: Will the US stop collecting tariffs from February 24, 2026?
US Customs and Border Protection stopped collecting tariffs under the old emergency powers act at 12:01 am on Tuesday, February 24, 2026. However, new tariffs of 15% are now in place under a different law.
Q: Are businesses getting refunds for tariffs paid before February 24, 2026?
There is no new information from the US Customs and Border Protection about refunds for importers who paid tariffs under the previous rules. This lack of clarity is a major worry for businesses.
Q: What is the future of US trade deals with the UK and EU?
The future is uncertain. While a US trade representative says existing deals remain valid, the EU calls the situation 'pure tariff chaos.' Businesses are worried that deals signed last year could be changed.