US President Donald Trump’s new global tariff has officially come into effect at 10%, lower than the 15% rate he had suggested over the weekend, following a significant legal setback at the Supreme Court.
After the Supreme Court blocked several of his sweeping import taxes last Friday, Trump initially pledged to impose a 10% global tariff before later indicating it could rise to 15%. However, official documents released Tuesday confirmed the levy remains at 10%, with no directive issued to increase the rate.
As reported by the BBC, the administration is applying the tariff under Section 122 of the 1974 Trade Act, which allows the president to impose temporary import duties for up to 150 days without congressional approval. An executive order signed by Trump stated the measure is intended to “address fundamental international payments problems” and rebalance trade relationships in favor of American workers, farmers, and manufacturers.
Legal and Economic Tensions Rise
The move follows a 6–3 ruling by the Supreme Court of the United States, which determined that Trump had exceeded his authority when he previously introduced broad tariffs using the 1977 International Emergency Economic Powers Act (IEEPA).
Trump strongly criticized the court’s decision, describing it as “ridiculous” and “extraordinarily anti-American.”
Growing Trade War Concerns
Economists warn that the rapidly changing tariff announcements are increasing uncertainty for businesses and global markets. Carsten Brzeski, an analyst at ING, said the policy shifts risk reigniting a full-scale trade war as international partners consider possible retaliation.
The United States has already collected at least $130 billion in tariffs under IEEPA, according to official data. Meanwhile, the US trade deficit has widened to approximately $1.2 trillion, rising 2.1% compared to 2024.
Several countries, including the United Kingdom, the European Union, and India, are reviewing their trade arrangements with Washington amid the uncertainty.
With the 10% tariff now in effect, global markets are watching closely to see whether it remains temporary — or signals a broader escalation in international trade tensions.
