Donald Trump Escalates Global Tariffs to 15 %, Defying Supreme Court Ruling

Published February 22, 2025

President Donald Trump has announced an immediate increase in global tariffs from 10% to 15%, in response to what he described as a “ridiculous, poorly written, and extraordinarily anti-American” ruling by the United States Supreme Court that struck down his previous emergency tariffs.

U.S. President Donald Trump announced on February 21, 2026 that he will raise the global tariff rate on all imports to 15 percent, immediately following a U.S. Supreme Court decision that curtailed key elements of his previous tariff strategy. The move has dramatically intensified debate over presidential authority in trade policy and global economic relations.

Tariff Hike After Court Setback

Trump’s announcement came just one day after the Supreme Court struck down parts of his sweeping global tariffs — previously set at 10 percent — imposed under emergency powers. The Court’s 6-3 majority ruled that the president had exceeded his authority when he used the International Emergency Economic Powers Act to impose broad tariffs on imports from virtually every country.

In response, Trump took to Truth Social, labeling the decision “ridiculous, poorly written, and extraordinarily anti-American,” and said he would raise the tariff to the statutory maximum of 15 percent, invoking Section 122 of the Trade Act of 1974 — a seldom-used legal provision that allows temporary import surcharges without congressional approval under certain balance-of-payments conditions.

“…raising the 10 % Worldwide Tariff on Countries… to the fully allowed, and legally tested, 15 % level.” — Trump post on Truth Social.

Trump concluded with his iconic, “Thank you for your attention to this matter.”

The boost is a five percent increase from the tariffs he had put in place the night before.

Why This Matters

The tariff hike applies universally — affecting goods from China, Europe, India, Japan, and other trading partners — and is expected to remain in place for up to 150 days unless Congress acts to extend or modify it. Analysts say this will create uncertainty for importers, exporters, global supply chains, and markets.

While Trump insists the move protects American jobs and addresses unfair trade practices, economic groups and lawmakers from both sides of the aisle voiced concern:

• Business leaders argue the tariffs will increase costs for American consumers and companies that rely on imported materials.

• Some lawmakers say the President’s action pushes executive powers to new extremes, challenging constitutional norms about who sets taxes and tariffs.

Court vs. President: A Clash Over Authority

The Supreme Court’s decision focused on the limits of presidential power. The justices said Congress — not the executive branch — has primary authority to levy taxes and duties, particularly when broad economic policy is at stake. That ruling struck down tariffs imposed under emergency authority but did not affect tariffs set under other trade laws that require formal investigations and procedural reviews.

Trump’s swift pivot to Section 122 underscores his determination to maintain a tough trade stance, even after judicial pushback. Critics counter that this reliance on rarely used statutes could fuel further legal challenges and potentially constitutional disputes.

Global and Domestic Reactions

The tariff move has sparked reactions on several fronts:

• Foreign governments cautioned that escalating tariffs could destabilize global trade and harm diplomatic ties.

• Legal experts say Section 122 may provide temporary cover but does not grant unrestricted tariff power.

• Business groups warn that American households could see higher prices and inflationary pressures if tariffs are sustained or expanded.

In India and other trading nations, policymakers said they are monitoring the situation closely and assessing impacts on bilateral trade and investment.

Implications of Trump’s 15% Global Tariff Escalation

President Donald Trump’s decision to raise worldwide tariffs to 15% — following a setback from the Supreme Court of the United States — carries significant economic, legal, and geopolitical consequences.

1. Higher Prices and Inflation Pressure

A universal 15% tariff functions as a tax on imports. In economic terms, tariffs directly affect the price of goods entering the country. When import costs rise, companies often pass those costs on to consumers.

This directly affects the GDP formula:

$$GDP=C+I+G+(X-M)$$

If imports (M) fall due to higher tariffs, it can initially improve the trade balance. However, higher consumer prices can reduce consumption (C), potentially slowing overall economic growth.

Possible Effects:

• Increased consumer prices on electronics, vehicles, clothing, and food imports

• Supply chain cost increases for U.S. manufacturers

• Potential short-term inflation spikes

2. Business and Market Uncertainty

The abrupt escalation — especially after a Supreme Court ruling limiting executive authority — introduces legal uncertainty.

Implications:

• Companies may delay investment decisions

• Stock markets could experience volatility

• Import-heavy industries (retail, auto, tech) may see margin pressure

Investors typically react negatively to unpredictability in trade policy.

3. Executive Power vs. Judicial Authority

The confrontation between the White House and the Supreme Court is not just about trade — it’s about constitutional authority.

Trump’s move to invoke Section 122 of the Trade Act of 1974 raises broader constitutional questions:

• How far can a president go in imposing tariffs without Congress?

• Could this set a precedent for expanded executive economic power?

• Will further legal challenges follow?

If challenged again, the case could redefine the limits of presidential emergency economic powers.

4. Global Trade Relations

Trading partners — including China, the European Union, India, and Japan — may respond with retaliatory measures.

Potential outcomes:

• Counter-tariffs on American exports

• Strained diplomatic relations

• Acceleration of de-dollarization efforts in some regions

• Shifts in supply chains away from U.S. markets

A global tariff at this level may push allies to diversify away from U.S. dependency.

5. Strategic Economic Shift

Supporters argue the 15% tariff:

• Protects domestic industries

• Reduces trade deficits

• Encourages reshoring of manufacturing

Critics argue it:

• Acts as a hidden tax on consumers

• Risks trade wars

• Weakens global economic stability

The long-term impact depends on:

• Whether Congress intervenes

• Whether the courts limit further executive action

• How foreign governments respond

 Overall Takeaway:

SOURCES: THE GATEWAY PUNDIT – President Trump Defies ‘Anti-American’ Supreme Court, Raises Global Tariffs to 15% Effective Immediately

NEWS NATION – Trump hikes global tariffs again, this time to 15%

NATIONAL HERALD – Trump escalates global tariffs to 15%, defying US Supreme Court setback