Washington, D.C., U.S.- President Donald Trump announced a sharp escalation in the United States’ trade policy, increasing the global tariff rate on nearly all imports from 10 per cent to 15 per cent, just days after the U.S. Supreme Court struck down much of his earlier tariff programme as unlawful.
The move further deepens uncertainty in global markets and signals a broader clash between the White House and legal authorities over executive power and trade.
Court Ruling Shakes Trump’s Trade Agenda
On Feb. 20, the Supreme Court delivered a 6–3 decision rejecting Trump’s use of the International Emergency Economic Powers Act (IEEPA) to impose sweeping global tariffs, saying the law did not authorise broad import taxes without explicit congressional backing.
Justices emphasised that only Congress has clear authority over trade policy, underscoring the constitutional separation of powers.
The ruling invalidated many of the tariffs Trump had imposed last year and threw into question how more than $175 billion collected from import duties might be handled, with major companies already lining up legal challenges seeking refunds.
Tariffs Upgraded to 15%, Legal Pathways Sought
In response to the court setback, President Trump announced that the U.S. would now impose a 15 percent global tariff, the highest rate permitted under a different law — Section 122 of the Trade Act of 1974 — which allows temporary tariffs for up to 150 days without congressional approval.
The administration says this will take effect immediately, and Trump has vowed to explore other avenues for more permanent tariffs, including investigations into “unfair trade practices” and national security concerns.
Critics argue the administration is simply shifting legal strategies to maintain aggressive tariff policy, while supporters say it protects U.S. industries from unfair competition.
Analysts warn that this piecemeal use of multiple statutes complicates U.S. trade policy and could fuel further litigation.
Complex Refund Fight Brewing
With the Supreme Court having declared the original tariffs unlawful, legal battles over refunds have already begun.
More than 1,800 tariff-related lawsuits have been filed with the U.S. Court of International Trade by major companies, including Toyota, Costco and Alcoa, seeking to recover duties they paid under the now‑invalid regimes. Economists estimate that hundreds of billions of dollars could be at stake in refund demands.
Experts warn that the process of securing refunds will be slow and complex, likely involving years of litigation and requiring firms to individually seek reimbursement from federal courts rather than receiving automatic rebates.
Smaller businesses may be at a disadvantage due to legal and procedural hurdles.
Global & Economic Impact
The tariff policy shift has far‑reaching implications for global supply chains and international relations.
Foreign companies and governments have welcomed the Supreme Court’s decision as a win for the rule of law and a stabilising factor in world trade.
Yet the sudden move to raise tariffs amid legal uncertainty complicates import planning, investment decisions and pricing strategies worldwide.
Financial markets have reacted to the news with volatility as traders and investors attempt to gauge the long‑term impact of shifting U.S. trade policy on inflation, consumer goods pricing and international competitiveness.
