Trump Imposes New Global Tariff After Supreme Court Decision
President Trump has announced a sweeping 15 percent tariff on global imports, capping a dramatic weekend in which his trade agenda suffered a major setback at the hands of the US Supreme Court.
On Friday, in a 6–3 ruling, the justices upheld a lower federal court decision striking down his so-called “Liberty Day” tariffs, finding that he had unlawfully invoked the International Emergency Economic Powers Act (IEEPA).
The President reacted angrily, describing the justices — including several he appointed — as an “embarrassment to their families” and denouncing the judgment as flawed, unfair and anti-American.
Within hours, he turned to Section 122 of the Trade Act of 1974 to impose a 10 percent global tariff. By Saturday, the rate had been increased to 15 percent, effective from 24 February 2026. However, it’s still unclear which rate will apply.
Section 122 allows 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 would require congressional approval — a potentially steep hurdle after the House of Representatives voted 219–211 earlier this month against his proposed punitive tariffs on Canada.
Not all of Trump’s trade measures were affected by the Court’s ruling. Tariffs on steel and aluminium, as well as on automotive imports imposed under separate statutory authorities, remain in force.
The Court declined to address the contentious issue of refunds, potentially amounting to between $130 billion and $175 billion — a process that now appears likely to descend into administrative and legal chaos. Trump has warned that repayments, if made, will be slow and heavily contested, possibly dragging on for years. With no automatic reimbursement mechanism in place, more than 1,000 importers have already initiated legal action, raising the prospect of prolonged 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 which 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.
