Trump’s fresh 15% global tariff adds to trade uncertainty

Global trade has been thrown back into uncertainty after President Donald Trump introduced a new 15 percent tariff on almost all imports, just hours after the Supreme Court blocked a major part of his earlier tariff programme.

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In a 6 to 3 ruling, the Supreme Court of the United States said Trump exceeded his authority when he used the International Emergency Economic Powers Act (IEEPA) to impose sweeping global tariffs last year. The court held that Congress, not the president, has the constitutional power to create new taxes. It also made clear that the 1977 law was meant to regulate trade during emergencies, not to raise revenue.

The judgment invalidates tariffs first introduced in February 2025, when Trump cited fentanyl trafficking as a national emergency, and later expanded to cover imports from nearly every country. Those measures were estimated to have generated around  $130 billion for the US Treasury. The court did not say whether the money must be refunded, leaving that question likely to be decided in further litigation.

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But the legal setback was short lived. Within hours of the decision, Trump invoked Section 122 of the Trade Act of 1974 to impose a new 10 percent global tariff. A day later, he announced that the rate would rise to 15 percent. The provision allows the president to introduce tariffs of up to 15 percent for 150 days to address balance of payments concerns, after which Congress must step in.

The move has complicated the outlook for countries that had negotiated trade deals to avoid higher duties. The United Kingdom secured zero rates on steel, aluminium and pharmaceuticals. India recently agreed to a framework that would reduce tariffs on key exports to 18 percent. The European Union reached a provisional deal setting tariffs at 15 percent, though ratification has stalled.

It remains unclear whether these negotiated rates will stand or whether the new universal 15 percent tariff will apply across the board.
Industry specific tariffs remain unaffected. Duties on steel, aluminium and vehicles imposed under Section 232 of the Trade Expansion Act of 1962 continue in force on national security grounds.

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Arjun Singh, a trade lawyer, told Al Jazeera the court’s decision removes a key incentive that had driven countries to strike deals quickly. “The advantage of locking in a lower rate before competitors has weakened,” he said. “That changes the negotiating dynamic.”
For countries such as China, which agreed only to a temporary truce rather than a full agreement, the ruling may strengthen their position ahead of fresh talks.