President Donald Trump has abruptly increased his new global tariffs to 15 percent. This escalation happened just one day after a sweeping Supreme Court ruling struck down his previous international trade taxes. The immediate rate hike targets countries the administration accuses of unfair trade practices, creating fresh uncertainty for international commerce and domestic markets.
The dramatic shift in trade policy follows a major legal defeat for the president. On Friday, the Supreme Court ruled 6-3 that Trump lacked the constitutional authority to impose his original global tariffs under the International Emergency Economic Powers Act of 1977. The justices decided that the power to tax belongs to Congress, not the executive branch, effectively canceling the taxes Trump had placed on almost all foreign nations.
Supreme Court Backlash and Administration Response
The court’s decision triggered a fast and angry response from the White House. Calling the ruling “deeply disappointing” and “anti-American,” Trump fiercely criticized the judicial branch during a Friday press conference and in social media posts.
The president attacked both liberal and conservative members of the court. He called the liberal justices a “disgrace to our nation.” Meanwhile, he labeled the conservative justices who voted against him as “lapdogs” and an “embarrassment to their families.” Trump also claimed foreign interests wrongly influenced the court and accused the justices of acting disloyally toward the United States Constitution.
Despite this legal loss, the administration quickly found a different legal path. Trump signed an executive order using Section 122 of the Trade Act of 1974. This created a baseline 10 percent universal tariff meant to take effect on Tuesday. However, less than twenty-four hours later, the president surprised his own White House staff by raising the tax to 15 percent, which is the highest rate allowed under the 1974 law.
In a message on Truth Social, Trump explained that the quick increase was a necessary response to decades of economic unfairness. He stated that the legally tested 15 percent level would apply to countries that have consistently ripped off the United States without facing consequences.
Utilizing the Trade Act of 1974
Using the Trade Act of 1974 is a highly unusual move in modern politics. No president has used Section 122 in the last fifty years. Legal experts warn that using this law could lead to another wave of lawsuits.
Under this specific law, the president’s power has strict limits. The 15 percent global tariffs can only last for 150 days unless Congress officially votes to extend them. Because the law sets a strict 15 percent limit, the president cannot raise this specific universal tax any higher.
To prevent severe supply chain problems, the White House announced that certain critical imports will avoid the new Section 122 taxes. According to administration officials, essential minerals, metals, and energy products will be exempt from the tariffs.
Furthermore, the new 15 percent baseline does not cancel out older trade deals that have higher rates. U.S. trade representatives confirmed that countries like Malaysia, Cambodia, and Indonesia must still honor their existing agreements. Those specific deals still require a 19 percent tax on exports to the United States.
Economic Fallout and Future Trade Actions
The Supreme Court’s choice to strike down the original emergency tariffs leaves massive financial questions unanswered. Before the ruling, the government had already collected an estimated $133 billion in import taxes. Some reports suggest companies actually paid as much as $175 billion under the canceled system.
Large corporations and foreign governments are now asking for refunds with interest. Experts like John Diamond from the Center for Tax and Budget Policy expect a smooth refund process for massive businesses. However, the overall repayment effort could be delayed by years of complex legal battles. Meanwhile, American families who paid about $1,000 extra for everyday goods like groceries will likely never get that money back.
This sudden policy shift completely changes the administration’s long-term economic plans. Oxford Economics originally estimated the emergency tariffs would create $36 trillion in revenue between 2026 and 2035. The Supreme Court’s intervention immediately dropped the average tariff rate from 12.7 percent down to 8.3 percent, ruining those financial goals.
Looking forward, Trump has promised to announce more legally allowed tariffs in the coming months. The administration views import taxes as the best way to rebuild American manufacturing and force other countries to help fight drug trafficking and global conflicts.
Officials are currently looking into other trade powers, including Section 301 investigations. This would allow the government to heavily tax nations that restrict American businesses or use unfair practices. The administration has also suggested putting massive 50 percent tariffs on trading partners that violate World Trade Organization agreements.
