Trump’s tariff plan: 10 percent rate takes effect despite 15 percent announcement following Supreme Court ruling

US President Donald Trump’s new global tariffs have been enforced at a 10 percent rate on Tuesday following the Supreme Court ruling in which the court blocked many of his sweeping taxes.

Trump called the Supreme Court decision “ridiculous, poorly written, and extraordinarily anti-American.”

In response to Friday’s landmark ruling, the Trump administration signed a new executive order aiming to impose new levies effective February 24.

One day later, Donald Trump threatened to increase the tariff rates from 10 percent to 15 percent.

The President posted on Truth Social, “he would be raising the 10% Worldwide Tariff ... to the fully allowed, and legally tested, 15% level.”

However, no official steps were taken to increase the tariff rates.

The administration has decided to impose the levy under Section 122 of the 1974 Trade Act, allowing the president to impose the charge for 150 days without congressional approval.

Just before the major new tax on imported goods began, the US Customs and Border Protection informed importers of major rules in which the 10 percent rate would be applied to every country for 150 days, starting at 12:01 a.m. ET this Tuesday.

However, it is possible that some countries would be granted an exception later.

According to the President, these tariffs are necessary to slash America’s trade deficit. Last week, the US trade deficit hit roughly $1.2 trillion.

The US has already collected at least $130bn in tariffs using the 1977 International Emergency Economic Powers Act, as reported by officials.

Responses from countries

On Monday, President Trump intensified his trade rhetoric, threatening to impose “higher tariffs” if countries try to play games with existing trade agreements.

The UK government has clarified that while it does not wish to start a”trade war” the retaliatory measures will not deter it from taking reciprocal actions.

The EU bloc announced that it would suspend the ratification of a trade deal reached over summer, citing a lack of "stability and predictability" as the primary reason for pausing the agreement.

India has decided to defer scheduled negotiations that were intended to finalize a recent trade agreement.

And for some countries, such as China and Brazil, the recently announced baseline is lower than already imposed US tariffs.