Trump announces global 15pc tariff plan after court blocks previous import taxes

KATHMANDU: U.S. President Donald Trump has announced plans to impose a global tariff of up to 15 percent on imports entering the United States, escalating his protectionist trade agenda after the country’s top court struck down earlier duties.

The announcement follows a ruling by the Supreme Court of the United States, which invalidated import taxes previously introduced under emergency economic powers. Trump criticized the judgment and signaled that his administration would adopt alternative legal mechanisms to continue tariff enforcement.

Shift from 10% to Possible 15% Tariff

On Friday, Trump had indicated that a 10 percent tariff would be applied to all goods entering the U.S. However, on Saturday he posted on his social media platform Truth Social that the rate could be raised to as much as 15 percent using a rarely invoked provision of U.S. trade law.

The tariff would be imposed under Section 122 of the Trade Act of 1974, which allows temporary import restrictions for balance-of-payments or currency concerns. According to international media reports, the measure could remain in effect for about five months unless Congress approves an extension.

The previously proposed 10 percent tariff was expected to take effect Tuesday, February 24, but it remains unclear whether the higher 15 percent rate will be implemented from the same date.

Confusion Among Trade Partners

The possible tariff hike has created uncertainty for several U.S. allies, including the United Kingdom and Australia, which had earlier negotiated arrangements assuming a 10 percent rate.

Trump said the decision to raise tariffs followed what he described as a “ridiculous, weakly written, and extremely anti-American” ruling by the Supreme Court.

Court Ruling Limits Presidential Authority

In a 6–3 decision, the court found that Trump exceeded his authority when he used the International Emergency Economic Powers Act to impose global tariffs last year.

Government data shows the U.S. had collected at least $130 billion in duties under that framework before the ruling.

Following the judgment, Trump said he was “ashamed” of some justices and labeled those rejecting his trade strategy as “foolish.”

The majority included the court’s three liberal justices along with Chief Justice John Roberts, and Trump-appointed conservatives Amy Coney Barrett and Neil Gorsuch.
The dissenting justices were Clarence Thomas, Brett Kavanaugh, and Samuel Alito.

Tariffs Central to Trump’s Economic Agenda

Tariffs have been a core element of Trump’s economic strategy, which aims to push companies to invest and manufacture within the United States rather than overseas.

However, analysts say the court ruling represents a major legal constraint on presidential trade powers and could complicate Trump’s second-term policy agenda.

Trump has repeatedly argued that tariffs are necessary to reduce the U.S. trade deficit. Yet recently released data shows the deficit widened by 2.1 percent to roughly $1.2 trillion.

Mixed Reactions from Business and Agriculture

Business reaction has been divided.

Drew Greenblatt, owner of Marlin Steel Wire Products in Baltimore, said the court ruling was disappointing and warned it could harm workers striving to move into the middle class.

In contrast, Virginia soybean farmer John Boyd Jr., founder of the National Black Farmers Association, described the ruling as a major victory for farmers and a setback for the president.

Former UK government trade adviser Allie Renison said the situation highlights growing complexity in global trade policy.

“It may look like a good day for free trade, but trade has become more complicated,” she noted, adding that a fragmented tariff strategy under the Trump administration is increasing uncertainty for businesses.

Exemptions and Sector Impacts

While most goods could face tariffs of up to 15 percent under Section 122, key items such as critical minerals, metals, and pharmaceuticals are expected to be exempt.

Separate tariffs already in place on steel, aluminum, timber, and automobiles will remain unchanged.

A White House official also indicated that even countries with bilateral trade agreements with Washington, including the United Kingdom, could still fall under the global tariff regime. However, sector-specific agreements involving British steel, aluminum, pharmaceuticals, vehicles, and aerospace products are unlikely to be affected.

European Leaders Respond

French President Emmanuel Macron said France would adapt its response according to developments.

German Chancellor Friedrich Merz warned that tariff uncertainty is “poison” for the global economy.

Refund Claims May Follow Court Decision

The Supreme Court ruling has opened the door for consumers and businesses to seek refunds for duties collected under the invalidated tariffs. Trump said legal battles could delay repayments for years.

U.S. Chamber of Commerce policy chief Neil Bradley urged a quick refund process to help small businesses, while the National Retail Federation asked the court to ensure a smooth reimbursement system for importers.

Democratic Senator Maria Cantwell has written to Treasury Secretary Scott Bessent requesting clarity on refund plans.

Meanwhile, Republican Senator John Kennedy argued that if Democrats push the refund issue aggressively, it could ultimately benefit Republicans in upcoming elections.

Fiscal Nepal |
Sunday February 22, 2026, 11:01:33 AM |


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