US President Donald Trump announced an immediate increase of the proposed global tariff rate from 10% to 15%, citing a recent "ridiculous, poorly written, and extraordinarily anti-American decision" by the US Supreme Court. The Supreme Court had ruled 6-3 that his administration lacked the legal authority to impose sweeping global duties under the International Emergency Economic Powers Act (IEEPA).
Key points
- The new 15% global tariff is being imposed under Section 122 of US trade law (balance-of-payments tariff), which allows tariffs up to 15% for up to 150 days.
- Trump accused several countries of exploiting the US for decades and claimed the revised rate is legally sound.
- The Supreme Court setback involved ruling that IEEPA does not authorize the president to unilaterally levy broad, economy-wide tariffs.
- Justices Clarence Thomas, Samuel Alito, and Brett Kavanaugh dissented from the Supreme Court ruling.
Why it matters
This action represents a significant escalation in trade policy following a major judicial check on presidential authority, likely increasing economic uncertainty.
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