Donald Trump Raises Global Tariffs to 15 Percent Day After Supreme Court Blocks Emergency Trade Powers
US President Donald Trump on Saturday announced plans to increase a newly proposed global tariff rate to 15 percent, just one day after the Supreme Court curtailed his authority to impose sweeping import duties under emergency powers. The move signals a defiant continuation of his America First trade strategy and sets the stage for fresh legal and economic battles.
New Delhi, February 21: US President Donald Trump on Saturday announced plans to increase a newly proposed global tariff rate to 15 percent, just one day after the Supreme Court curtailed his authority to impose sweeping import duties under emergency powers. The move signals a defiant continuation of his America First trade strategy and sets the stage for fresh legal and economic battles.
In a 6-3 ruling in Learning Resources Inc. v. Trump, the Supreme Court determined that the International Emergency Economic Powers Act of 1977 does not grant the executive branch authority to levy taxes on imports. Chief Justice John Roberts, writing for the majority, said the Constitution reserves the power to tax for Congress, dismantling a central pillar of Trump’s second-term tariff framework. US Supreme Court Strikes Down Donald Trump’s Global Tariffs in Landmark Ruling.
The administration had relied on the emergency law to justify its so-called Liberation Day tariffs, which pushed effective US tariff rates to levels not seen since the 1940s. The ruling immediately invalidated that structure, forcing the White House to adopt a new legal strategy. India to Pay 10% Tariff, White House Urges Trade Partners to Abide by Trade Deals.
Within hours of the decision, Trump shifted course, invoking Section 122 of the Trade Act of 1974. The rarely used provision allows the president to impose temporary import surcharges of up to 15 percent to address serious balance-of-payments deficits. Initially floated at 10 percent, the tariff was raised to the statutory maximum of 15 percent on Saturday.
Unlike the previous framework, the Section 122 tariffs are limited to 150 days unless Congress approves an extension. The new duties are set to take effect February 24, prompting uncertainty across global markets and supply chains.
Since April 2025, the federal government has collected an estimated USD 133 billion in tariff revenue. Following the Supreme Court decision, trade lawyers say billions of dollars could now face refund claims from US importers who argue the earlier duties were unlawfully imposed.
While the White House maintains that the new 15 percent tariff will preserve negotiating leverage in trade talks, critics warn it could trigger another wave of legal challenges. Retailers, manufacturers, and industries dependent on global imports are bracing for renewed price volatility as businesses adjust to the looming surcharge.
The ruling did not affect separate sector-specific tariffs on steel, aluminum, and certain Chinese goods enacted under other statutes. Still, Trump’s swift pivot underscores his determination to continue reshaping international trade policy through executive authority despite mounting judicial and legislative scrutiny.
The president publicly criticised the Supreme Court decision and vowed to press forward with what he called necessary measures to protect American industries, setting up a high-stakes confrontation between the executive branch and Congress over the limits of trade power.
(The above story first appeared on LatestLY on Feb 21, 2026 10:34 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).