In a weekend of high-stakes legal and economic drama, President Donald Trump has aggressively moved to bypass a stinging US Supreme Court defeat. Just 24 hours after a landmark ruling struck down his previous trade regime, the President announced via Truth Social that he is raising global tariffs to a flat 15%, effective February 24, 2026.
The move follows a 6–3 Supreme Court decision on Friday that invalidated earlier tariffs imposed under the International Emergency Economic Powers Act (IEEPA). The Court ruled that the President lacks the authority to impose sweeping, indefinite duties without explicit Congressional approval.
A Rapid Escalation: From 10% to 15%
In a defiant response to the judiciary, Trump initially signaled a 10% baseline tariff during a Friday night press conference. However, by Saturday, the rate was hiked to 15%—the statutory maximum allowed under his newly invoked legal authority.
To reinstate the duties, the administration is now utilizing Section 122 of the Trade Act of 1974. This provision allows the President to impose temporary import surcharges to address "large and serious" balance-of-payments deficits.
Key constraints of the new 15% tariff include:
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150-Day Limit: The duties can only remain in place for five months without a vote from Congress.
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Targeted Exemptions: Critical minerals, certain medicines, electronics, and agricultural products remain exempt.
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Immediate Implementation: The new rates are set to take effect at 12:01 a.m. ET on Tuesday, February 24.
Trump Slams "Disgraceful" Ruling
President Trump did not mince words regarding the Supreme Court’s decision, describing the justices as a "disgrace to the country." He argued that the ruling weakens America’s leverage against foreign competitors.
"I am ashamed of some judges in the court," Trump stated. "They don't have the courage to do the right thing for our country."
Despite the broad hike, the President offered a silver lining for certain allies. He confirmed that the trade deal with India remains intact, noting, "PM Modi is my good friend," and signaled that existing agreements would be respected within the new framework.
The $200 Billion Refund Question
The Supreme Court’s ruling has created a massive legal vacuum regarding the $200 billion in tariff revenue already collected. While the Court declared the IEEPA-based tariffs illegal, it provided no clear guidance on whether companies are entitled to refunds.
Trump has vowed to fight any repayment efforts, predicting that the battle for refunds will be mired in litigation for the next two to five years. For businesses, this means that while the "illegal" 10% or 25% rates are gone, they are immediately being replaced by a legally distinct 15% surcharge.
Why This Matters for the Global Economy
This shift marks a pivotal moment in US trade history. Section 122 has rarely been used in this manner, and its application signals a move toward a more "legally tested" but equally aggressive protectionist stance.
For the average consumer, the 15% hike on a wide range of imported goods could lead to immediate price increases at retailers. For global markets, the 150-day countdown creates a new "cliff" that will keep investors on edge until mid-summer.
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