U.S. President Donald Trump announced an increase in the proposed tariff rates from 10 to 15 percent after the Supreme Court ruled his previous tariff policy illegal. This decision creates chaos in global trade and triggers sharp reactions from leaders of Brazil, France, and Germany. Meanwhile, American companies are preparing for a battle to reclaim up to $175 billion in previously collected customs duties.
Supreme Court Blocks Tariffs
The highest judicial instance in the U.S. ruled that the president's arbitrary imposition of tariffs was unlawful, undermining a pillar of his policy.
Increase to 15 Percent
In a retaliatory gesture, Donald Trump raised the proposed tariff rate from 10 to 15 percent, using a new legal mechanism to circumvent the ruling.
Threat of Massive Refunds
The U.S. Treasury may be forced to pay $175 billion in compensation to companies that paid illegal taxes.
European Union Mobilization
France and Germany are pushing for a joint EU response to American protectionism, considering retaliatory mechanisms.
The U.S. Supreme Court decision of February 20, 2026, constitutes one of the most serious blows to the economic agenda of the Donald Trump administration to date. The justices, including three appointed by the president himself, ruled by a vote of 6 to 3 that the White House exceeded its authority by imposing mass tariffs under the International Emergency Economic Powers Act. This ruling not only invalidates the tariffs introduced in April 2025 but also opens the way for massive claims. Court disputes and customs procedures could open the way to refunds of previously collected tariffs, whose total exposure analysts estimate at tens of billions of dollars, and according to some models, around $175 billion. However, the scale of refunds depends on the scope of invalidated rates and which claims will be admissible within the deadlines and procedures provided by customs law. In response to the ruling, which Trump called "anti-American" and "ridiculous," the president announced a new tariff offensive. While initially suggesting a 10 percent rate, he ultimately announced the introduction of a 15 percent global tariff, citing Article 122 of the 1974 Trade Act. However, this mechanism, intended to protect the balance of payments, is limited to 150 days, which legal experts say is merely a temporary workaround to circumvent the court's ruling. The Supreme Court has thus once again become the key arbiter in the dispute over the limits of executive power in Washington. Since the passage of the Trade Act in 1974, U.S. presidents have gradually expanded the interpretation of emergency powers, leading to long-standing disputes over the constitutional division of power between the White House and Congress regarding foreign trade regulation. The international reaction is firm. Brazilian President Lula da Silva called for equal treatment of all trading partners, while France and Germany urged a united response from the European Union. French Minister of Foreign Trade, Nicolas Forissier, emphasized that the Community has the necessary tools to counter the protectionist actions of the USA. Uncertainty also affects Switzerland and South Africa, which were among the countries most impacted by Trump's previous policy of "reciprocal" tariffs. Meanwhile, some polls from February 2026 indicated about 60 percent dissatisfaction with the president, although other measurements and polling averages showed lower values. „After an exhaustive, detailed, and complete review of the ridiculous, poorly written, and extraordinarily un-American decision of the Supreme Court...” — Donald Trump In 1930, the Smoot-Hawley Act, by raising tariffs in the U.S., led to retaliation from other countries and deepened the Great Depression, which economists still cite today as a warning against the effects of economic isolationism. Trump's trade policy, based on the goal of reducing the trade deficit through customs duties, now faces its biggest test of durability. These tariffs, while presented as a tool to pressure China or the European Union, have a ricochet effect on American importers and consumers, which was the direct cause of the complaint filed by the toy company Learning Resources.
Mentioned People
- Donald Trump — U.S. President announcing an escalation of the tariff war.
- Luiz Inácio Lula da Silva — President of Brazil calling for equal treatment of countries in trade.
- Nicolas Forissier — French Minister of Foreign Trade calling for EU unity.
- Rick Woldenberg — Chicago entrepreneur whose lawsuit led to the overturning of the tariffs.