US President Donald Trump announced on Saturday that he will increase temporary global tariffs from 10% to 15%, the maximum allowed under Section 122 of the 1974 Trade Act, just one day after the Supreme Court struck down his sweeping tariff program as unlawful.
President Donald Trump on Saturday said that he was hiking his newly announced global tariff to 15%, less than a day after announcing a 10% worldwide duty. The rapid escalation came as Trump scrambled to preserve his signature trade policy following the devastating court ruling.
The justices, divided 6-3, ruled that Trump’s aggressive approach to tariffs on imports from across the world was not permitted under a 1977 law called the International Emergency Economic Powers Act (IEEPA). The Friday ruling invalidated the vast majority of tariffs that were in effect, except for some sector-specific duties such as those on autos, car parts and semiconductor chips.
Trump responded swiftly to the defeat. He quickly signed an executive order – resting on a different statute, Section 122 of the Trade Act of 1974 – to impose the blanket 10 percent tariff, starting on Tuesday. The 15 percent hike announced on Saturday is the highest rate allowed under that law.
However, these replacement tariffs come with significant limitations. Those tariffs are limited to 150 days unless they are extended by Congress. No president has previously invoked Section 122, and its use could lead to further legal challenges.
The White House said the Section 122 tariffs include exemptions for certain products, including critical minerals, metals and energy products. Pharmaceuticals and goods under the US-Mexico-Canada Agreement also remain exempt from the new levy.
The Supreme Court ruling and Trump’s subsequent actions have created economic uncertainty globally. While some countries that had negotiated higher tariff deals may see relief, others face continued pressure. The administration faces potential refund obligations exceeding $170 billion to importers who paid the now-invalidated tariffs.
Trump’s State of the Union address on Tuesday is expected to focus heavily on defending his economic policies amid mounting criticism from both Democrats and some Republicans about the tariffs’ impact on American consumers and businesses.
