Trump Says He Will Raise Global Tariff to 15 Percent: What You Need to Know

 

Introduction :-

In a dramatic escalation of his trade war strategy, President Donald Trump announced on Saturday, February 21, 2026, that he would raise the global tariff on imports to 15 percent — just one day after imposing a 10% worldwide duty. The announcement came hours after the U.S. Supreme Court dealt a major blow to his tariff agenda, ruling 6-3 that his previous sweeping tariffs were unlawful. Rather than backing down, Trump doubled down — pivoting to a new legal framework and maxing it out within 24 hours.

This article breaks down everything you need to know about Trump’s 15% global tariff: why it happened, the legal basis behind it, what it means for consumers and businesses, and what comes next.

Key Highlights at a Glance

Background: The Supreme Court Ruling That Started It All

On Friday, February 20, 2026, the U.S. Supreme Court issued a landmark 6-3 ruling that declared Trump’s previous sweeping global tariffs illegal. The justices determined that the International Emergency Economic Powers Act (IEEPA) — a 1977 law that Trump had relied on to impose broad tariffs — does not actually give the president the authority to levy tariffs.

The ruling invalidated the vast majority of tariffs that had been in effect since 2025, though sector-specific duties on autos, car parts, and semiconductor chips were left intact.

• Chief Justice John Roberts wrote in the majority opinion that the court’s role is limited and that IEEPA simply “does not authorize the President to impose tariffs.”
• Justices Brett Kavanaugh, Clarence Thomas, and Samuel Alito dissented.
• The ruling raised the possibility of over $175 billion in refunds owed to importers.

Trump responded furiously, calling the ruling “ridiculous, poorly written, and extraordinarily anti-American” and saying he was “absolutely ashamed” of the justices who voted against him.

Trump’s Swift Response: From 10% to 15% in 24 Hours

Rather than accepting the court’s decision, Trump moved swiftly to keep his tariff agenda alive using a different legal mechanism.

Step 1 — Friday, February 20: The 10% Global Tariff

Within hours of the Supreme Court ruling, Trump signed an executive order imposing a 10% global tariff under Section 122 of the Trade Act of 1974, a provision that had never been used before to impose tariffs. The White House said these tariffs would take effect starting Tuesday, February 24.

Step 2 — Saturday, February 21: Raised to 15%

The very next morning, Trump posted on Truth Social announcing that he was immediately raising the tariff to 15% — the maximum level permitted under Section 122.

In his own words:

“I, as President of the United States of America, will be, effective immediately, raising the 10% Worldwide Tariff on Countries, many of which have been ‘ripping’ the U.S. off for decades, without retribution (until I came along!), to the fully allowed, and legally tested, 15% level.”

The Legal Framework: Section 122 of the Trade Act of 1974

Understanding the legal basis for the new tariff is critical. Here’s how Section 122 works and how it differs from IEEPA:

The administration justified the new tariff by citing “large and serious United States balance-of-payments deficits” — the statutory trigger under the 1974 law.

What Goods Are Affected?

The 15% global tariff applies broadly to most imports entering the United States. However, there are important exemptions:

• ✅ Exempted: Pharmaceuticals (under separate investigations)
• ✅ Exempted: Goods entering under the USMCA (US-Mexico-Canada Agreement)
• ✅ Exempted: Sectors already subject to separate tariff probes (steel, aluminum, autos)
• ❌ Covered: The vast majority of consumer and industrial goods from all trading partners

The U.S. Trade Representative also announced Section 301 investigations on “most major trading partners” on an accelerated timeframe, signaling that additional, potentially higher tariffs could follow once those investigations conclude.

Economic Impact: What This Means for Americans

For Consumers

• Higher prices on imported goods, from electronics to clothing to household items
• The Congressional Budget Office estimated Trump’s broader tariff program could cost the economy $3 trillion over the next decade
• The Tax Foundation noted that Trump’s tariffs represent the largest U.S. tax increase as a percent of GDP since 1993, amounting to an average tax increase of $1,500 per U.S. household in 2026

For Businesses

• JPMorgan Chase Institute data showed tariffs paid by midsize U.S. businesses tripled in 2025
• Importers may face uncertainty about whether tariffs paid under IEEPA will be refunded (potentially over $100 billion)
• Supply chains remain disrupted as companies scramble to adapt to yet another policy shift

For Trading Partners

• All countries face a baseline 15% tariff, though countries with existing tariff deals (like the UK, Japan, and others) are navigating whether those deals still stand
• The UK government stated it “expects our privileged trading position with the US to continue”
• Section 301 investigations on most major partners open the door to country-specific tariffs well above 15%

Global Reactions

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What Happens After 150 Days?

The clock is now ticking. Under Section 122 of the Trade Act of 1974, the 15% tariff can only remain in effect for 150 days without Congressional action.

• After 150 days, Congress must vote to extend the tariffs
• It is unclear whether the Trump administration could restart tariffs immediately after 150 days via another executive order
• The administration has already said it will pursue additional “legally permissible” tariffs through other statutory mechanisms during this period
• Section 301 investigations on major trading partners could result in higher country-specific duties being layered on top

Frequently Asked Questions (FAQs)

❓ Why did Trump raise the global tariff to 15%?

Trump raised the tariff to 15% in direct response to the Supreme Court’s February 20, 2026, ruling that struck down his previous sweeping tariffs. After quickly imposing a 10% tariff under a new legal authority (Section 122 of the Trade Act of 1974), he raised it to 15% — the maximum allowed under that law — within 24 hours.

❓ Is the 15% tariff legal?

The tariff is being implemented under Section 122 of the Trade Act of 1974, which has not been struck down. However, it has never been used to impose sweeping global tariffs before, and it is possible this authority could also face legal challenges. The Trump administration describes it as “fully allowed and legally tested.”

❓ How long will the 15% tariff last?

Under Section 122, the tariff can last a maximum of 150 days. After that, Congress would need to vote to extend it. The administration has signaled it is working on additional long-term tariff mechanisms through other legal channels.

❓ Which countries are affected by the 15% tariff?

The tariff applies globally — to all countries exporting goods into the United States. However, goods covered under the USMCA (Canada and Mexico), pharmaceuticals, and goods under separate sector-specific probes are currently exempt.

❓ Will prices go up for American consumers?

Almost certainly yes, at least in the short term. Economists broadly agree that tariffs tend to raise prices for consumers and businesses. The Tax Foundation estimated an average cost increase of $1,500 per U.S. household in 2026 due to Trump’s tariff policies.

❓ Will importers get refunds from previously paid tariffs?

The Supreme Court ruling that struck down IEEPA-based tariffs raised the possibility of refunds. The Penn Wharton Budget Model estimated refunds could total up to $175 billion. However, the process and timeline for any refunds remain unclear.

❓ What happens to existing trade deals Trump made with countries like Japan and the UK?

This remains uncertain. The new 15% tariff technically applies universally, but the administration has indicated it will work with partners to understand how the ruling affects existing arrangements. The UK government, for instance, expects its preferential deals on steel, autos, and pharmaceuticals to continue.

❓ What comes next in Trump’s tariff strategy?

Trump has warned that his administration will “determine and issue the new and legally permissible Tariffs” in the coming months. Simultaneously, Section 301 investigations have been launched on most major trading partners, which could result in higher, country-specific tariffs after the investigations conclude.

Timeline of Key Events

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Conclusion

Trump’s announcement of a 15% global tariff marks a pivotal moment in U.S. trade policy. Facing a historic Supreme Court rebuke, the administration rapidly pivoted to a new legal framework and immediately maxed it out. While the tariff is legally distinct from the ones struck down, it is temporary by design — lasting only 150 days — and faces its own potential legal and political hurdles.

What is clear is that the global trade environment remains highly volatile. Businesses, consumers, and trading partners worldwide will need to closely monitor developments as the administration races to build a new, “legally permissible” tariff architecture before the clock runs out.