Washington D.C. – In a swift and defiant response to a Supreme Court ruling against his administration’s tariff policies, President Donald Trump announced Saturday he will raise tariffs on all U.S. Imports to 15%, the maximum level currently permitted under law. The move comes just a day after the court struck down his previous, broader tariff program, finding that he had exceeded his authority in imposing the duties under an economic emergency law. The escalating trade tensions and the President’s reaction are raising concerns among economists and trading partners about potential disruptions to the global economy.
The Supreme Court’s decision on Friday marked a significant defeat for Trump, whose leverage of tariffs has been a hallmark of his economic agenda. The court ruled that the president lacked the legal basis to impose the sweeping tariffs without congressional approval. Immediately following the ruling, Trump announced a 10% across-the-board tariff, but quickly escalated that figure in a post on his social media platform, stating he would raise it to the “fully allowed, and legally tested, 15% level.” This latest action is based on Section 122 of the Trade Expansion Act of 1962, a law that has never been invoked by a U.S. President before.
Section 122 allows the president to impose tariffs up to 15% but requires congressional approval to extend them beyond 150 days. This looming deadline adds a layer of uncertainty, as trade experts and congressional aides are skeptical that the Republican-majority Congress will extend the tariffs, particularly given growing public dissatisfaction with the rising costs associated with the duties. A recent Reuters/Ipsos poll, which closed on Monday, showed that 34% of respondents approve of Trump’s handling of the economy, while 57% disapprove.
Supreme Court Ruling and Legal Challenges
The Supreme Court’s ruling stemmed from a challenge to Trump’s earlier tariff program, which had imposed duties on a wide range of imported goods. The court found that the president had overstepped his authority by invoking emergency powers to justify the tariffs. The case, Learning Resources, Inc. V. Trump (No. 24-1287), was decided on February 20, 2026, according to documents released by the court (Supreme Court, 2026). The court’s decision echoes a 1976 case involving Ford-era tariffs, demonstrating a historical precedent for limiting presidential power in trade matters.
The use of Section 122 is expected to face further legal challenges. Its untested nature and the 150-day expiration clause create a precarious situation for businesses and trading partners. The White House has indicated that it will also explore other legal avenues to impose tariffs, relying on statutes that permit import taxes based on national security or unfair trade practices.
Impact on Global Trade and Specific Countries
The immediate impact of the 15% tariffs is widespread uncertainty. Wendy Cutler, a former senior U.S. Trade official and now a senior vice president at the Asia Society think tank, expressed surprise that Trump didn’t initially opt for the maximum Section 122 rate, but noted that the rapid shift underscores the instability facing trading partners. The administration has stated that certain products, including critical minerals, metals, and energy products, will be exempt from the new tariffs.
The ruling and subsequent tariff adjustments are expected to have varying effects on different countries. Jamieson Greer, Trump’s trade representative, stated on Fox News that existing trade agreements with countries like Malaysia and Cambodia will be honored, meaning their exports to the U.S. Will continue to be taxed at negotiated rates of 19%, even with the new 15% baseline. Yet, countries like Brazil, which do not have such agreements, could notice their tariff rates drop from 40% to 15%, at least temporarily.
Trump’s Defiance and Future Strategy
President Trump has consistently championed the use of tariffs as a tool to protect American industries and extract favorable trade deals. He has repeatedly described tariffs as his “favorite word” and has not hesitated to attack those who challenge his authority on the matter, including the Supreme Court justices. In a post on Truth Social, Trump wrote, “I, as President of the United States of America, will be, effective immediately, raising the 10% Worldwide Tariff on Countries…to the fully allowed, and legally tested, 15% level.”
Despite the legal setback, Trump has signaled his intention to continue pursuing protectionist trade policies. He stated he will use the 150-day period afforded by Section 122 to explore other “legally permissible” tariffs. The administration intends to leverage existing statutes related to national security and unfair trade practices to justify further import taxes. This suggests a continued commitment to using tariffs as a central component of his economic strategy, even in the face of legal and political opposition.
Looking Ahead
The coming months will be critical as the administration navigates the legal and political challenges posed by the new tariffs. The 150-day window for Section 122 will force a decision on whether to seek congressional approval for an extension, a move that appears unlikely given the current political climate and public sentiment. The focus will also be on how the administration utilizes other trade statutes to justify additional tariffs, and how trading partners respond to these evolving policies. The next major checkpoint will be the expiration of the Section 122 tariffs in approximately 150 days, around August 20, 2026, when the administration will need to either secure congressional approval for an extension or discover alternative legal justifications for maintaining the duties.
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