President Trump defies Supreme Court ruling with new 10% global tariff plan

U.S. President Donald Trump has announced a new 10% global tariff immediately following a Supreme Court ruling that struck down his "reciprocal levies" policy, a move analysts say will trigger a fresh wave of uncertainty for global trade.

The U.S. Supreme Court ruled 6-3 on Friday that the International Emergency Economic Powers Act did not grant the president the authority to tax imports, asserting that such power belongs to the Congress.

Despite this major blow to his economic agenda, Trump stated at the White House that the decision affirmed his ability to utilize different statutes to protect the country.

“In order to protect our country from unfair trading practices, a president can actually charge more tariffs than I was charging in the past,” Trump said, citing Section 122 to impose the new 10% levy over and above existing duties.

The White House noted that Trump's proclamation imposes the global 10% tariff for a "period of 150 days" and that the "temporary import duty" will take effect February 24 at 12:01 a.m. EST.

The Supreme Court's ruling is narrow, affecting only tariffs imposed under emergency powers. Consequently, many existing trade barriers remain fully in place and "in full force, according to Trump. This includes tariffs on steel, aluminum, upholstered furniture, and kitchen cabinets, which were enacted under different statutes like Section 232 and Section 301.

Commenting on Trump's move, economic experts suggest that any near-term boost to the economy from lowering tariffs would likely be offset by a prolonged period of uncertainty.

The announcement has also sent ripples through various sectors.

The U.S. National Retail Federation expressed hope for a "seamless process" to refund tariffs, as stores have been forced to pass price increases to shoppers sensitive to inflationary pressures.

Farmers, already struggling with higher costs for equipment and fertilizer, have urged the president to avoid using other authorities to impose new tariffs on agricultural inputs.

For industries like craft brewing, which rely on imported aluminum for cans, these costs remain a significant challenge alongside volatile commodity prices and shifting demand.

As the U.S. administration initiates new investigations into "unfair trading practices," analysts expect the instability in U.S. trade policy to persist.