After court ruling, Trump says US global tariff rate will rise from 10% to 15%

The announcement came less than 24 hours after Trump unveiled a 10% across-the-board tariff on Friday, following the court’s ruling. The decision found he had overstepped his authority when imposing a range of higher rates under an economic emergency law.

The new measures are based on a different, largely untested statute known as Section 122, which permits tariffs of up to 15% but requires congressional approval to keep them in place beyond 150 days. No US president has previously invoked Section 122, and its use could trigger additional legal challenges.

Trade experts and congressional aides have expressed doubt that the Republican-controlled Congress would extend the tariffs, citing polling that shows more Americans blaming duties for higher prices.

In a Truth Social post on Saturday, Trump said the increase to 15% would take effect immediately and argued that many countries had been taking advantage of the United States for decades. He also said he would use the 150-day window to pursue other “legally permissible” tariffs.

The administration plans to lean on two other statutes that allow import taxes on particular products or countries, based on investigations tied to national security concerns or alleged unfair trade practices.

The White House said the Section 122 tariffs include exemptions for certain products, including critical minerals, metals and energy products.

Wendy Cutler, a former senior US trade official and now a senior vice president at the Asia Society think tank, said she was surprised Trump did not opt for the maximum Section 122 rate on Friday, adding that the rapid change highlighted the uncertainty facing US trading partners.

The Supreme Court ruling, written by Chief Justice John Roberts, concluded that the law Trump relied on for most of his tariffs - the International Emergency Economic Powers Act - did not give him the broad powers he claimed. Roberts was joined by conservatives Neil Gorsuch and Amy Coney Barrett, both appointed by Trump, as well as the court’s three liberal justices.

Trump responded angrily, labelling the justices in the majority “fools” and singling out Gorsuch and Barrett as “embarrassments”, while pledging to press ahead with his global trade war.

Some foreign leaders welcomed the decision. French President Emmanuel Macron said on Saturday it showed the value of democratic checks and balances and the rule of law. German Chancellor Friedrich Merz said he expected the ruling would reduce pressure on German companies, adding that he would use an upcoming trip to the United States to reiterate that “tariffs harm everyone”.

Trump has repeatedly used tariffs - or the threat of them - to secure trade deals with other countries. After the court decision, his trade representative, Jamieson Greer, told Fox News on Friday that those countries must honour agreements even if they set rates higher than the Section 122 tariff.

Greer said exports to the United States from countries such as Malaysia and Cambodia would continue to face their negotiated tariff rates of 19%, even though the universal rate is lower. Indonesia’s chief negotiator for US tariffs, Airlangga Hartarto, said a bilateral deal signed on Friday that set US tariffs at 19% would remain in force despite the court decision.

The ruling could also benefit countries such as Brazil, which has not negotiated a deal with Washington to reduce its 40% tariff rate and could now see its rate fall to 15%, at least temporarily.

With November’s midterm elections approaching, Trump’s approval rating on his handling of the economy has been steadily slipping during his first year in office. In a Reuters/Ipsos poll that closed on Monday, 34% of respondents said they approved of his economic performance, while 57% said they disapproved.

Affordability remains a major concern for voters. Democrats, who need to flip only three Republican-held seats in the US House of Representatives in November to win a majority, have blamed Trump’s tariffs for worsening the rising cost of living.

Reuters