President Donald Trump announced on Saturday an immediate increase in the baseline tariff rate on goods entering the United States from 10 percent to 15 percent, intensifying his administration's trade policy just one day after the Supreme Court dealt a significant blow to his emergency powers. The president framed the escalation as a direct response to what he called the court's "extraordinarily anti-American decision," asserting that the new rate represents the "fully allowed, and legally tested" level permitted under U.S. law.
In a post on his Truth Social platform, Trump stated that after a "thorough, detailed, and complete review" of Friday's ruling, he was raising the worldwide tariff on countries he accused of having "ripped" the United States off for decades. "During the next short number of months, the Trump Administration will determine and issue the new and legally permissible Tariffs, which will continue our extraordinarily successful process of Making America Great Again," he added, signaling that further measures could follow in the coming months.
Supreme Court Ruling Strikes Down Emergency Tariffs
The tariff increase follows a landmark 6-3 Supreme Court ruling on Friday that invalidated Trump's use of the International Emergency Economic Powers Act (IEEPA) to impose sweeping duties on U.S. trading partners. Chief Justice John Roberts, delivering the opinion of the court, wrote that the administration's interpretation of the 1977 law encroached on congressional authority, emphasizing that the Constitution grants Congress the power to levy taxes and duties. The court held that IEEPA, historically used for sanctions and asset freezes, does not explicitly authorize the president to impose tariffs, and that trade deficits do not constitute the kind of national emergency envisioned under the statute.
The ruling represented a major setback for a central pillar of Trump's second-term economic agenda, which has relied heavily on tariffs as both a revenue tool and a negotiating lever in global trade disputes. However, the decision did not bar the administration from pursuing tariffs under other statutory provisions.
The Trade Act Provision
Hours after the ruling, Trump signed an executive order imposing a 10 percent global tariff under Section 122 of the Trade Act of 1974, a rarely used provision that allows the president to impose duties of up to 15 percent for up to 150 days to address "large and serious" balance of payments problems. Saturday's announcement raises that rate to the statutory maximum, effective immediately. The tariffs apply on top of existing duties and are scheduled to take effect at 12:01 a.m. Eastern time on February 24.
Section 122 does not require a prior investigation, but any extension beyond 150 days would need congressional approval. The White House is separately reviewing alternative legal provisions, including Section 301 of the Trade Act and Section 232 of the Trade Expansion Act, to sustain tariff revenues and maintain leverage in trade negotiations.
Reactions and Implications
The administration's swift escalation drew a mixed response. U.S. Trade Representative Jamieson Greer has initiated investigations under Section 301, which permits tariffs on imports deemed threats to national security or resulting from foreign governments' unfair practices, indicating the probe would likely cover "most major trading partners". Business groups, which had welcomed the Supreme Court's ruling as a reaffirmation of congressional authority, expressed renewed concern about uncertainty in global markets and the potential for prolonged legal battles.
Trump, visibly angered by the court's decision, insisted that his broader tariff architecture remained intact. "All of those tariffs remain," he told reporters at a White House briefing, referring to national security tariffs under Section 232 and existing Section 301 duties. He claimed the ruling ultimately made a president's ability to regulate trade "more powerful and more crystal clear," vowing to use alternative methods to implement tariffs. Asked about the status of trade deals negotiated under the now-invalidated authority, Trump said some would continue while others would be replaced.