Trump Raises Global US Tariff Rate to 15% After Supreme Court Setback

New rate follows swift Supreme Court rebuke

President Donald Trump said on Saturday that he would raise the global tariff he had announced a day earlier to 15% from 10%, calling the increase "effective immediately." The move came a day after the Supreme Court ruled 6-3 that Trump exceeded his authority by imposing tariffs under the International Emergency Economic Powers Act (IEEPA), a 1977 law reserved for national emergencies, according to CNN and the Los Angeles Times.

Trump had signed an executive order Friday imposing a 10% tax on imports from around the world under Section 122 of federal trade law, with the tariff set to take effect at 12:01 a.m. ET on Tuesday, the same day as his State of the Union address, the Los Angeles Times reported. Presidents can impose tariffs of up to 15% under Section 122, but such duties are temporary and require congressional approval after 150 days, according to CNN.

Reaction to the ruling

Trump called the Supreme Court's decision "deeply disappointing" and criticized the justices who ruled against him, including two of his own appointees, Neil Gorsuch and Amy Coney Barrett, the Los Angeles Times reported. He praised dissenting justices Brett Kavanaugh, Clarence Thomas and Samuel Alito. The White House did not respond to requests for comment on when the 15% rate would formally take effect, according to both outlets.

Winners and losers among trading partners

For many countries, the new 15% rate is lower than the duties they faced under the tariffs struck down by the court. Joe Brusuelas, chief economist at RSM US, told CNN that Brazil, Canada, China, India, Indonesia, Mexico and South Africa would see lower tariffs under the new rate; Brazil and India had faced duties as high as 50%, while China had faced rates as high as 145%.

• Brazil, India and other Asian countries that reached trade deals with the Trump administration are "temporarily winners," said Kyle Handley, an economics professor at the University of California, San Diego, cited by CNN.
• Argentina, Australia, Saudi Arabia and the United Kingdom would face higher tariffs than before, according to Brusuelas.
• Steel and aluminum tariffs imposed under separate Section 232 authority remain unaffected by the change, CNN reported.

The Brussels Times reported that the increase in US tariffs is expected to have a limited impact on the Brussels economy, suggesting the practical effect on the European Union will be modest.

Limited relief for consumers, no clarity on refunds

Treasury Secretary Scott Bessent said Friday at an event hosted by the Economic Club of Dallas that consumers who already paid higher prices are unlikely to see relief from any tariff adjustments. "I've got a feeling the American people won't see it," he said, according to CNN. Handley said prices on some imported goods already in stores could ease as inventory sells through, "but there won't be too much relief."

Federal data show the Treasury had collected more than $133 billion from tariffs imposed under the IEEPA authority as of December, the Los Angeles Times reported, citing the Associated Press. The Supreme Court's ruling did not address what happens to funds already collected. Democrats on the House Ways and Means Committee accused Trump of "pickpocketing the American people," while California Governor Gavin Newsom said Trump "does not care about you," according to the Los Angeles Times. Trump said his administration would determine and issue further "legally permissible" tariffs over the coming months, potentially using additional trade-law authorities such as Section 232 or Section 301 investigations.