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Updated 22 February 2026 - US President Donald Trump has escalated trade tensions by unveiling a 15% global tariff on imports, replacing measures struck down by the Supreme Court.
Trump raises tariffs to 15% under emergency trade law
President Donald Trump declared on Saturday that he would impose a 15% tariff on all goods entering the United States, invoking a rarely used 1974 trade statute. The move follows a Supreme Court decision that invalidated his previous import taxes, which had relied on a 1977 emergency powers law.
The new levies, authorized under Section 122 of the Trade Act of 1974, can remain in effect for approximately five months without congressional approval. Trump initially announced a 10% tariff on Friday, set to take effect on 24 February, but later increased it to 15% via a post on Truth Social. It remains unclear whether the higher rate will also begin on Tuesday.
Supreme Court ruling triggers tariff overhaul
The Supreme Court ruled 6-3 on Thursday that Trump had exceeded his authority by imposing sweeping global tariffs under the International Emergency Economic Powers Act (IEEPA). The decision dismantled a cornerstone of his economic policy, which aimed to reduce reliance on foreign manufacturing and shrink the trade deficit.
Government data shows the US had already collected $130 billion (£96.4 billion) from the now-invalidated tariffs. Trump criticized the ruling as "ridiculous" and "extraordinarily anti-American," while also attacking the justices who opposed his policy as "fools."
"I am ashamed of certain members of the court."
Donald Trump, US President
Global trade partners brace for impact
The abrupt shift to a 15% tariff has raised concerns among US allies, including the UK and Australia, which had negotiated 10% rates under earlier agreements. A White House official confirmed on Friday that these deals would be superseded by the new global tariff, though exemptions remain for critical minerals, pharmaceuticals, and certain metals.
Separate tariffs on steel, aluminum, lumber, and automobiles-imposed under different legislation-remain unaffected by the court's decision. The UK government stated it expects its "privileged trading position" with the US to continue but acknowledged the situation is "a matter for the US to determine."
"This could be worse for British businesses."
William Bain, Head of Trade Policy, British Chambers of Commerce
Businesses and lawmakers react
Industry responses to the tariff hike have been sharply divided. Drew Greenblatt, owner of Baltimore-based Marlin Steel Wire Products, called the Supreme Court's decision a "setback for poor people in America" who could have benefited from expanded manufacturing jobs.
In contrast, Virginia soybean farmer John Boyd, founder of the National Black Farmers Association, hailed the ruling as "a huge win" and a "big loss for the president."
Allie Renison, a former UK trade adviser, warned that the new tariffs would create a "patchwork approach" to trade policy, complicating business operations. She argued that while the ruling might appear as a victory for free trade, it would ultimately make global commerce "a lot messier."
Refunds and legal battles loom
The Supreme Court's decision left open the possibility of refunds for businesses that paid the now-unlawful tariffs, though it did not mandate reimbursements. Trump suggested on Friday that any refunds would face protracted legal challenges, potentially dragging on for years.
Trade groups, including the US Chamber of Commerce and the National Retail Federation, have urged swift action to return the funds. Neil Bradley, the Chamber's chief policy officer, emphasized that refunds would support "more than 200,000 small business importers" and bolster economic growth.
US Senator Maria Cantwell, a Democrat from Washington, has demanded details from Treasury Secretary Scott Bessent on how the administration plans to reimburse businesses. Meanwhile, Republican Senator John Kennedy of Louisiana argued that pushing for refunds could backfire politically, potentially benefiting Republicans ahead of November's midterm elections.
Economic and diplomatic fallout
The US trade deficit reached a record $1.2 trillion (£890 billion) this week, widening by 2.1% compared to 2024. Trump has long cited reducing the deficit as a justification for tariffs, but critics argue the measures harm consumers and businesses.
In Europe, the European Parliament's International Trade Committee has paused ratification of a pending US-EU trade deal. German MEP Bernd Lange, the committee's chairman, cited "several issues" requiring clarification following Trump's announcement.
