Trump Imposes 10% Global Tariff After Supreme Court Ruling
US President Donald Trump has unveiled a sweeping 10% worldwide tariff on all countries, a move that comes in the wake of a significant Supreme Court ruling that rejected his previous reciprocal tariffs strategy. The decision, announced by Mr Trump, is set to take effect almost immediately, marking a bold shift in US trade policy.
Supreme Court Strikes Down Reciprocal Tariffs
On Friday, the US Supreme Court delivered a major blow to President Trump's economic agenda by striking down his reciprocal tariffs policy. This policy, which had been in place since last April and utilized emergency powers legislation, imposed tariffs on the majority of nations globally. The court's ruling, backed by a 6-3 majority, determined that a 1977 statute did not grant Mr Trump the authority to levy such tariffs without congressional approval.
Despite this setback, Mr Trump remained defiant, alleging that the court had been swayed by foreign interests. He stated, "They won't be dancing for long, that I can assure you," referring to other nations celebrating the ruling. In response, he has moved swiftly to implement a new tariff framework under alternative legislation.
New Tariff Announcement and Legal Basis
Writing on Truth Social just before midnight UK time, Mr Trump declared, "It is my Great Honor to have just signed, from the Oval Office, a Global 10% Tariff on all Countries, which will be effective almost immediately." During a White House briefing, he elaborated that the Supreme Court ruling actually confirmed his authority to levy additional tariffs through other statutes.
He explained, "Under the various tariffs authorities, so we can use other of the statutes, other of the tariff authorities, which have also been confirmed and are fully allowed." Specifically, he cited Section 122, Section 232, and Section 301 tariffs, which will remain in place. The new 10% global tariff will be imposed over and above existing tariffs and is expected to last for approximately five months while further investigations into unfair trading practices are conducted.
Impact on UK and Global Trade
In Britain, government officials have expressed confidence that the nation's privileged trading position with the US will persist despite the Supreme Court's judgment. The UK had previously secured a favourable tariff rate of 10%, with additional exemptions negotiated by Sir Keir Starmer for sectors such as steel and automotive manufacturing. Whitehall sources believe that the bulk of UK-US trade, including agreements on steel, vehicles, and pharmaceuticals, will remain unaffected.
A government spokesman stated, "This is a matter for the US to determine but we will continue to support UK businesses as further details are announced. Under any scenario, we expect our privileged trading position with the US to continue." However, the ruling has introduced uncertainty, as Mr Trump indicated that some trade agreements struck under the reciprocal tariffs may no longer hold, potentially being replaced with new tariffs.
Economic Implications and Reactions
The US has collected over $133 billion (£98.4 billion) from the tariffs since their implementation, but now faces the possibility of having to reimburse that sum to importers following the court's decision. William Bain, head of trade policy at the British Chambers of Commerce, warned that Mr Trump could use alternative legislation to reintroduce tariffs, urging the UK government to continue negotiations to reduce tariffs where possible.
Campaign group Best for Britain criticized the move, arguing it "underlines the instability of doing deals with Trump's USA and the importance of forging deeper, more reliable trade with our EU neighbours." The broader global trade community is now bracing for potential disruptions as the new tariffs take effect, with many nations awaiting further details on how the policy will be enforced.
