After Supreme Court Setback, Trump Again Raises Global Tariffs to 15%

US President Donald Trump has raised global reciprocal tariffs from 10 per cent to 15 per cent, a day after the Supreme Court of the United States scaled back his earlier tariff order. Invoking Section 122 of the Trade Act of 1974, Trump introduced a temporary universal tariff, escalating trade tensions despite legal and political challenges to his authority.

The move marks another attempt by the administration to rebalance trade flows, even as questions mount over executive power in trade policymaking.

Supreme Court Curtails Earlier Tariff Order

The Supreme Court held that Trump’s previous tariff action, issued under emergency economic powers, exceeded the legal limits of presidential authority. The ruling signalled that sweeping import duties cannot bypass Congress without clear statutory backing.

The judgment introduced fresh uncertainty into US trade policy and was widely seen as a significant check on executive power. It also raised doubts about the administration’s ability to sustain broad-based tariffs without legislative approval.

New Tariff Under Trade Act

Hours after criticising the court’s decision, Trump announced a revised tariff regime under Section 122 of the Trade Act of 1974. The provision allows temporary measures, capped at 150 days, to address balance of payments concerns.

Under the new schedule, all imports will face a 15 per cent duty, a five-percentage-point increase from the earlier 10 per cent threshold applied to most countries.

With US imports exceeding USD 3 trillion last year, even marginal changes in tariff rates can translate into billions of dollars in additional costs for businesses and consumers. Analysts caution that a uniform 15 per cent levy could push up prices in sectors such as technology, automobiles and home furnishings.

Economic and Political Fallout

Financial markets reacted cautiously as investors assessed potential inflationary pressures alongside possible gains for domestic manufacturers. Businesses reliant on global supply chains may face tighter margins as import costs rise.

Trump defended the tariff hike as a corrective step against what he described as decades of unfair trade practices. Critics argue that frequent policy shifts complicate long-term planning and create instability in supply chains.

Congress retains the authority to intervene within the 150-day window permitted under Section 122, setting the stage for a possible confrontation between the administration and lawmakers.

Trading partners may also weigh retaliatory measures, heightening the risk of broader trade tensions. As negotiations continue in Washington, the durability and broader economic impact of the 15 per cent tariff regime remain uncertain.

Also Read: Tariff Twist: India’s 18% Duty Cut to 10% After US Court Ruling