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Trump imposes fresh global tariffs after Supreme Court ruling
U.S. President Donald Trump has introduced a new 15% tariff on imports from nearly all countries, replacing an earlier policy blocked by the Supreme Court. The move has left businesses and economists grappling with uncertainty over trade costs and market stability.
Legal shift triggers abrupt policy change
On Friday, the Supreme Court ruled that Trump could not use the 1977 International Emergency Economic Powers Act to levy import taxes. In response, Trump signed a proclamation on Saturday invoking Section 122 of the 1974 Trade Act, allowing him to impose a temporary 10% tariff on global imports. Hours later, he announced via social media that the rate would rise to 15%.
The White House stated it would continue to honor legally binding trade agreements but did not clarify whether countries with existing deals would face the new global rate or retain negotiated terms.
Businesses face higher costs and market instability
William Bain, head of trade policy at the British Chambers of Commerce (BCC), described the situation as exhausting for businesses. "There is a weariness about the constant changes, the lack of clarity, and the uncertainty over tariffs and pricing," he said. "Companies are frustrated and exasperated by the shifting policies."
The BCC estimates the 15% tariff will increase costs for UK exporters to the U.S. by £2-3 billion ($2.7-4 billion). Approximately 40,000 UK firms trade with the U.S., and the higher levies could discourage continued market engagement.
"This sudden increase in export costs will hit sectors like food, textiles, industrial goods, and electronics hardest," Bain said.
Economists warn of inflation and trade diversions
Paul Ashworth, chief North America economist at Capital Economics, noted that Section 122 requires non-discriminatory tariffs, meaning previous trade deals may no longer apply. "Major partners like the EU and Japan could find themselves back where they started," he said.
Tim Doggett, CEO of the UK's Chemical Business Association, warned that higher tariffs typically translate to increased consumer prices. "These costs are usually passed on to end users, adding to inflationary pressures," he said.
Research from Yale's The Budget Lab and the New York Federal Reserve suggests U.S. consumers already bear 31-90% of existing tariff costs. The latest hike is expected to follow the same pattern.
Refunds and future tariffs remain unclear
The Supreme Court's ruling opens the door for businesses to reclaim roughly $130 billion (£96 billion) in tariffs paid since April 2025. However, the decision did not address refunds directly, and the process could take years. Hundreds of firms have already filed lawsuits to secure repayments.
Bob Schwartz, a senior economist at Oxford Economics, suggested the administration might use alternative tariff tools to avoid large-scale refunds. Meanwhile, businesses fear Trump could impose further sector-specific tariffs under other laws, such as Section 232 of the 1962 Trade Expansion Act, which has been used for steel, aluminum, and vehicles.
"Additional sector-specific tariffs may gain prominence in 2026," said U.S. economist Bernard Yaros.
Exporters may shift focus away from U.S. market
Bain warned that persistent trade policy fluctuations could push exporters to prioritize other markets, such as the EU or Indo-Pacific region. "Companies are diversifying trade to fast-growing markets, which may have lasting effects," he said.
The White House has exempted certain goods from the new tariffs, including critical minerals, energy products, and select agricultural items like beef and tomatoes. However, businesses remain concerned about potential future levies on other sectors.
