After Court Decision, Trump Says US Global Tariff Rate Will Increase From 10% to 15%

President Donald Trump said on Saturday he would raise a temporary tariff from 10% to 15% on US imports from all countries, the highest level allowed under the law, after the US Supreme Court overturned his previous tariff plan.

The move came less than 24 hours after Trump announced a 10% tariff across the board on Friday following a court ruling. The decision found that the president exceeded his authority when he imposed many high tariffs under the economic emergency law.

The new levies are based on a separate but untested law, known as Section 122, which allows tariffs to reach 15% but requires congressional approval to increase after 150 days. No president has ever used Section 122, and its use could lead to other legal challenges.

Trade experts and congressional aides are skeptical that the Republican-majority Congress will increase tariffs, given polls that show more Americans suspect jobs at higher prices.

Trump is looking at other ways to impose tariffs

In a social media post on Saturday, Trump said he would use the 150-day period to work to remove other “legally allowed” tariffs. The administration intends to rely on two other provisions that allow for import taxes on certain products or countries based on investigations into national security or unfair trade practices.

“I, as the President of the United States of America, will act immediately, increasing the 10% Worldwide Tariff on the Countries, many of which have been ‘taking out’ the US for decades, without retaliating (until I come!), to a level fully allowed, and legally tested, 15%,” he wrote in the Truth Social post.

Section 122 tariffs include exemptions for certain products, including precious minerals, metals and energy products, according to the White House.

Wendy Cutler, a former U.S. trade official and senior vice president at the Asia Society think tank, said she was surprised Trump did not opt ​​for a higher Section 122 measure on Friday, adding that his quick turnaround underscores the uncertainty the allies face.

The decision of the Supreme Court, written by Chief Justice John Roberts, concluded that the law that Trump had used for many of his expenses, the International Emergency Economic Powers Act, did not give the president the power he claimed.

Roberts was joined in the majority by incumbents Neil Gorsuch and Amy Coney Barrett, both Trump appointees, and three liberal justices on the court.

Trump reacted angrily to the decision, calling many of the justices “idiots” and describing Gorsuch and Barrett in particular as “disgraceful,” while vowing to continue his global trade war.

Some foreign leaders applauded this decision. French President Emmanuel Macron said on Saturday this decision shows that it is good for democracies to have counterweights in power and law.

German Chancellor Friedrich Merz said he expected the decision to ease the burden on German companies. He said he would use his upcoming US tour to stress that “taxes hurt everybody.”

Trade deals must be honored: Greer

Trump has used tariffs, or the threat of imposing them, to extract trade deals from foreign countries.

After the court’s decision, Trump’s trade representative, Jamieson Greer, told Fox News on Friday that those countries must honor the agreements even if they want higher tariffs than the Section 122 tariffs.

Exports to the US from countries such as Malaysia and Cambodia will continue to be taxed at the negotiated rate of 19%, although the overall rate is lower, Greer said.

Indonesia’s chief negotiator on US tariffs, Airlangga Hartarto, said the trade agreement between the countries that set US tariffs at 19%, which was signed on Friday, remains in effect despite the court’s decision.

The decision could mean good news for countries like Brazil, which did not negotiate with Washington to lower its 40% tax rate but now could see its tax rate drop to 15%, at least temporarily.

As the November midterm elections approach, Trump’s approval rating on his handling of the economy has fallen slightly over the course of his year in office, with 34% of respondents saying they approve and 57% saying they disapprove in a Reuters/Ipsos poll that closed Monday.

Affordability remains a top concern for voters. The members of the Democrats need to change only three seats that the Republicans hold in the American House of Representatives in November to get a majority, blaming Trump’s penalty for increasing the cost of living.

(Reporting by Andrea Shalal and Doina Chiacu in Washington; Writing by Joseph Ax; Editing by Rod Nickel)