Washington, D.C. — A new global tariff imposed by U.S. President Donald Trump has come into force at a rate of 10 percent, lower than previously expected, after the United States Supreme Court blocked key elements of his broader tariff programme last week.
The tariff took effect on 24 February, after President Trump signed an executive order just hours after the court’s ruling on Friday. The rate is below the 15 percent levy the President had announced over the weekend, as no formal directive authorising an increase has yet been issued.
Market analysts have warned that the rapidly shifting tariff policy is increasing uncertainty for global businesses. Carsten Brzeski, an analyst at ING, said the development “adds to the chaos and mess,” noting that uncertainty levels have returned to those seen last year and raising concerns over possible retaliation by U.S. trading partners.
According to the executive order, the temporary import duty is intended to “address fundamental international payments problems and continue the Administration’s work to rebalance U.S. trade relationships to benefit American workers, farmers, and manufacturers.”
The administration is implementing the tariff under Trade Act of 1974, specifically Section 122, which allows the president to impose temporary import charges for up to 150 days without congressional approval.
President Trump has argued that tariffs are a necessary tool to reduce the U.S. trade deficit. However, official data released last week showed the deficit widening by 2.1 percent compared with 2024, reaching approximately $1.2 trillion (£890 billion).
The U.S. government has already collected at least $130 billion in tariffs under the International Emergency Economic Powers Act (IEEPA), the statute central to the Supreme Court’s latest ruling. In a 6–3 decision, the court found that the President had exceeded his authority when imposing sweeping global tariffs under the act last year.
President Trump criticised the ruling, calling it “ridiculous, poorly written, and extraordinarily anti-American,” and on Monday warned that countries which “play games” with existing trade agreements could face higher tariffs.
International reactions have been swift. The United Kingdom government said no retaliatory measures were “off the table” should the U.S. fail to honour its trade commitments, while stressing that “no one wants a trade war.” The European Union announced it would suspend ratification of a recently negotiated trade agreement pending clarity from Washington.
Speaking on behalf of the European Parliament’s U.S. relations delegation, Brando Benifei said the bloc would need to respond if trade conditions deteriorate, urging coordinated action among affected countries.
India also confirmed it would defer scheduled talks aimed at finalising a recent trade agreement as governments worldwide reassess their positions following the U.S. court decision.
The latest developments highlight ongoing tensions in global trade relations as the United States recalibrates its tariff strategy amid legal, economic, and diplomatic pressures.
