President Donald Trump escalated his trade agenda over the weekend, raising a newly imposed global tariff from 10% to 15% and vowing additional tariffs and licensing fees, even as fallout from the Supreme Court’s decision striking down most of his earlier duties spreads across global markets and Capitol Hill.
The move marks the latest twist in a rapidly evolving tariff saga that has rattled financial markets, disrupted trade negotiations and triggered new legislative fights over refunds that could total more than $175 billion.
Less than 24 hours after signing an order establishing a 10% universal tariff following the Supreme Court’s ruling, Trump increased the rate to 15% — the maximum allowed under Section 122 of the Trade Act of 1974.
The Supreme Court had struck down the bulk of Trump’s earlier tariff program imposed under the International Emergency Economic Powers Act (IEEPA), ruling that he had exceeded presidential authority. In response, Trump pivoted to Section 122 authority, which allows temporary across-the-board tariffs for up to five months.
Under Section 122, tariffs must be applied uniformly and on a nondiscriminatory basis, effectively undoing preferential arrangements previously negotiated with certain allies, including the United Kingdom, according to Fortune.
Economists note that while the headline rate jumped five percentage points, exemptions carried over from prior tariffs mean the effective rate likely rises only about two points — from roughly 12.5% to 14.5%.
Over the weekend, Trump also signaled further trade actions, renewing criticism of the Supreme Court and stating that other tariff authorities and licensing mechanisms remain available to his administration.
EU halts ratification; trade deals in limbo
The Supreme Court ruling and the subsequent 15% global tariff have already disrupted international trade diplomacy.
For countries such as China and Brazil — which previously faced significantly higher U.S. tariffs — the new 15% baseline represents a reduction.
But for allies that negotiated deals to lock in lower rates — including the United Kingdom, European Union and Japan — the sudden shift back to a uniform rate has created uncertainty, Reuters reported.
Both Britain and the EU have signaled interest in preserving their agreements, but legal analysts question whether those deals can stand now that the Supreme Court invalidated the legal foundation underpinning the original reciprocal tariff framework.
The European Parliament on Monday halted ratification of a pending U.S.-EU trade deal, citing legal and political uncertainty following the court decision — the latest diplomatic aftershock tied to the ruling.
Senate Democrats seek tariff refunds
On Capitol Hill, Senate Democrats moved quickly to capitalize on the court decision.
A group of Democratic senators introduced legislation Monday mandating refunds of tariffs collected under Trump’s IEEPA-based duties that were struck down.
The bill, led by Sens. Ron Wyden, Jeanne Shaheen and Ed Markey, would require Customs and Border Protection to process refunds with interest within 180 days and prioritize payments to small businesses, according to CNBC.
The Penn Wharton Budget Model estimates the federal government could be liable for more than $175 billion in refunds.
More tariffs may be coming
Beyond the Section 122 tariff increase, Trump indicated the administration would pursue additional investigations under Section 301 of the Trade Act of 1974 to target alleged unfair trade practices
Section 301 tariffs require investigative findings and could take several months to implement.
In social media posts following the court decision, Trump argued that the ruling does not eliminate other tariff authorities and floated the idea of licensing fees as a tool to pressure trading partners.
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