On Saturday, President Donald Trump announced his intention to boost global tariffs from 10% to 15%, just one day after the Supreme Court had overturned a significant portion of his trade policies.
In a post on Truth Social, Trump indicated that the new tariffs would be “effective immediately,” also cautioning that further tariffs would follow.
“As the President of the United States, I will, effective immediately, increase the 10% Global Tariff on Countries that have been ‘ripping’ the U.S. off for decades, without consequences (until I arrived!), to the fully permissible and legally validated 15% level,” he stated.
“In the coming months, the Trump Administration will identify and announce the new legally allowed Tariffs,” he added.
While Trump’s statement suggested the tariffs would take effect immediately, it remains uncertain whether official documents detailing the timing have been signed. A White House fact sheet released on Friday indicated that the original 10% tariffs would start on Tuesday, Feb. 24, at 12:01 a.m. ET.
The White House did not promptly respond to a CNBC request for additional clarification.
Trump, who is set to deliver his State of the Union address to Congress on Tuesday, faced a setback on Friday when the Supreme Court ruled 6-3 that he improperly invoked the International Emergency Economic Powers Act (IEEPA) to impose his tariffs.
Following the ruling on Friday, Trump reacted within hours, announcing a 10% global tariff that he established under Section 122 of the Trade Act of 1974. This law permits the president to impose temporary tariffs for up to 150 days, with any extension needing congressional approval.
The president harshly criticized the Supreme Court’s decision, labeling the ruling as “ridiculous, poorly articulated, and exceedingly anti-American” in a social media post.
He also targeted Justices Neil Gorsuch and Amy Coney Barrett for aligning with the majority in the ruling.
Following the Supreme Court’s decision, Congressional Democrats celebrated, with Senate Minority Leader Chuck Schumer, D-N.Y., stating that the tariffs were “chaotic and unlawful.” Tariffs and broader economic concerns are expected to be pivotal topics for the Democrats during the upcoming midterm elections in November.
Republicans exhibited a split in their responses. Some criticized the Supreme Court’s ruling, while others contended that Congress holds the constitutional right to impose tariffs.
On Friday, stocks surged initially in response to the Supreme Court’s decision, then retraced gains before bouncing back. Investors anticipate that the ruling might ease tensions with U.S. trading partners and potentially result in refunds for affected companies while helping to reduce inflation.
How the U.S. government plans to manage refunds remains uncertain. One estimate suggests that the U.S. could owe upwards of $175 billion in refunds to importers in light of the Supreme Court’s ruling.
