President Donald Trump has raised global import duties to 15%, the maximum allowed under his current legal strategy. This announcement came just one day after the U.S. Supreme Court, in a 6-3 ruling, struck down his previous tariff regime.
The court determined last Friday that the president overstepped his authority by using emergency powers to create what were essentially new taxes — a power constitutionally reserved for Congress.
Trump has now invoked Section 122 of the 1974 Trade Act to justify the 15% levy. This rarely used provision allows a president to impose temporary tariffs for 150 days before requiring congressional intervention.
Trump lashed out at the judiciary on social media, labeling the ruling “ridiculous” and “anti-American,” while specifically criticizing his own appointees for a perceived lack of loyalty to the administration’s agenda.
The move has injected fresh volatility into international markets. German Chancellor Friedrich Merz warned that such “constant uncertainty” acts as “poison” to the global economy. Domestically, the political divide remains sharp. Critics like California Governor Gavin Newsom condemned the hike as a massive tax on the American public. Conversely, some lawmakers, including Senator John Fetterman, indicated an openness to using tariffs against competitors like China, provided the administration collaborates with Congress.
The financial fallout is complex. While U.S. Trade Representative Jamieson Greer is initiating Section 301 investigations into unfair trade practices, businesses are demanding the return of $130 billion collected under the now-invalidated prior tariffs. However, experts warn that the logistics of these refunds are a “mess” and will likely trigger protracted legal battles.
