U.S. President Donald Trump announced an increase in the global tariff rate from 10 to 15 percent. This decision came just hours after the U.S. Supreme Court invalidated previous tariffs introduced in 2025 as illegal. The White House's new move is based on balance of payments protection provisions, which has drawn opposition from the European Union and caused concern in Asian markets, including India.

Tariff increase to 15 percent

Donald Trump raised the global tariff rate from the announced 10 to 15 percent, which is the maximum ceiling provided for import surcharge in Section 122 of the Trade Act of 1974.

Invalidation of previous tariffs

The U.S. Supreme Court ruled that the 2025 tariffs were imposed unlawfully, opening the way for companies to recover billions of dollars in overpayments.

European Union protest

The European Commission is demanding explanations from Washington, claiming that the U.S.'s new moves threaten the stability of transatlantic trade and the 2025 agreements.

India suspends negotiations

Due to uncertainty about U.S. tariff policy, the government in New Delhi postponed signing a new trade agreement with Washington.

The U.S. administration has sharply tightened its trade policy course following a significant defeat in the courts. On Friday the Supreme Court ruled by a 6-3 vote that tariffs imposed in 2025 under the IEEPA law were unlawful. The justices argued that the president lacks constitutional authority to impose taxes independently without explicit congressional approval. In response to this ruling, Donald Trump first announced a return to a 10 percent rate, only to ultimately declare an increase to 15 percent, citing Section 122 of the Trade Act of 1974. Evolution of U.S. Tariff Rates (February 2026): Invalidated tariff (IEEPA): 10, Initial announcement of new rate: 10, Finally announced rate: 15 Trade relations between the U.S. and Europe have remained tense since 2018, when the first Trump administration imposed tariffs on steel and aluminum. Since then, both sides have repeatedly resorted to retaliatory measures, leading to a profound reform of global supply chains under the banner of protecting domestic industry.The new decision triggered an immediate international reaction. The European Commission formally demanded explanations, emphasizing that Washington's current actions violate the "balanced trade" agreements reached in August 2025. German Chancellor Friedrich Merz, who is soon to visit the U.S., announced the development of a common, firm European Union position. Meanwhile, India decided to postpone a key trade meeting in Washington, citing extreme legal uncertainty. American technology corporations such as Apple and Alphabet are counting on refunds of billions of dollars in previously collected tariffs, although the new 15 percent rate may bring additional burdens. 130 mld USD — total amount of tariffs that U.S. companies may demand refunds for Legal experts point out that the new legal basis chosen by the president—Section 122—is intended to address balance of payments crises and allows for tariffs to be imposed for only 150 days. Since the U.S. is not currently in a state of payments collapse, the legality of this move will likely be challenged again. Nevertheless, the Trump administration declares that the tariffs take effect immediately, which investors interpret as an attempt to forcibly impose new trade terms on foreign partners. „Based on a thorough, detailed, and complete review of the ridiculous, poorly written, and extraordinarily anti-American decision on Tariffs issued yesterday... I will be, effective immediately, raising the 10% Worldwide Tariff to 15%.” — Donald Trump

Mentioned People

  • Donald Trump — President of the United States, author of new tariff decrees.
  • Friedrich Merz — German Chancellor, announced a joint EU response to tariffs.
  • Christine Lagarde — Head of the ECB, warned of a threat to economic balance.