Defied By The Court, Trump Strikes Back With New Tariff Counterattack

A turbulent weekend in US Politics has reshaped the US trade landscape, as President Trump unveiled a sweeping 10 percent tariff on imports from around the world.

The move came in the wake of a Supreme Court ruling that dealt a major blow to the administration’s earlier trade policy. In a 6–3 decision, the justices upheld a lower court’s finding that Trump had improperly relied on the International Emergency Economic Powers Act (IEEPA) to justify his so-called “Liberty Day” tariffs.

The Court determined that the statute did not grant the president authority to impose the broad duties in question. However, tariffs introduced under other legal frameworks — including those targeting steel, aluminium and automobiles — remain untouched.

The president reacted angrily, criticising the majority opinion as misguided and unpatriotic, and directing sharp remarks at several justices, including some he had nominated.

Within hours of the ruling, Trump turned to a different legal instrument: Section 122 of the Trade Act of 1974. Initially setting a 10 percent global import surcharge, he quickly announced he had increased it to the maximum 15 per cent allowed under the provision. However, only the 10 percent tariff has been applied so far.

The new tariff took effect on 24 February 2026 and can remain in place for up to 150 days without congressional approval. Any extension would require Congress's backing — an uncertain prospect given recent resistance in the House of Representatives to other proposed trade penalties.

Meanwhile, uncertainty surrounds the fate of revenues already collected under the invalidated tariffs. Estimates suggest potential refunds could total between $130 billion and $175 billion. With no automatic repayment system in place and more than 1,000 importers pursuing legal claims, businesses face the prospect of prolonged court battles.

The UK's situation seems to be unchanged for now. A UK government spokesperson stated that they expect the UK’s 10% trade deal to continue, while US Trade Representative Jamieson Greer said that the US will continue to honour tariff agreements it has already finalised with a number of countries around the world, including the UK.

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