Trump Escalates Global Tariffs After Supreme Court Setback
President Trump has announced a sweeping 15 percent tariff on global imports following a dramatic weekend that saw his trade agenda dealt a significant blow by the US Supreme Court.
On Friday, in a 6–3 decision, the justices upheld a lower federal court ruling striking down his so-called “Liberty Day” tariffs, concluding that he had made illegal use of the International Emergency Economic Powers Act (IEEPA).
The President responded furiously, branding the justices – including some he had appointed himself – an “embarrassment to their families” and condemning the judgement as flawed, unfair and anti-American.
Within hours, he invoked Section 122 of the Trade Act of 1974 to impose a 10% global tariff. By Saturday, however, he had announced an increased rate of 15%, but it bwas the 10% rate that became effective from 24 February 2026.
Section 122 permits a president to introduce a temporary import surcharge of up to 15 per cent for 150 days in cases of “large and serious” balance-of-payments difficulties. Any extension beyond that period would require approval from Congress, which may not have much appetite for it, given that the House of Representatives voted 219–211 against his punitive tariffs on Canada earlier this month.
Not all of Trump’s trade measures were affected by the Court’s ruling. Tariffs such as steel and aluminium, along with automotive imports, enacted under separate legal authorities, remain in force.
The Court did not address the thorny issue of refunds, potentially worth between $130 billion and $175 billion, which currently looks likely to be a complete mess. Trump has said the refund process will be long and contested and may drag on for years. With no automatic repayment mechanism in place, more than 1,000 importers have launched legal action, raising the prospect of lengthy litigation.
A UK government spokesperson stated on Saturday that they expect the UK’s 10% preferential trade deal with the US to continue regardless of what rate applies. Meanwhile, US Trade Representative Jamieson Greer said that the US will continue to honour tariff agreements it has already finalised with a number of countries around the world, including the UK.
