Trump Defies Supreme Court with New 15% Global Tariff Mandate

WASHINGTON D.C., 22 February 2026 — US President Donald Trump has plunged global markets into fresh uncertainty this weekend, responding to a landmark Supreme Court defeat by aggressively escalating his protectionist agenda. Just hours after the nation’s highest court struck down central pillars of his trade policy as unconstitutional, Trump issued a defiant executive decree raising proposed global import duties from 10 to 15 per cent. The move has sent shockwaves through international capitals, with the European Union demanding the immediate refund of billions in “illegal” duties already collected.

The Supreme Court Blow: A “Day of Liberation” for Trade?

The crisis began late last week when the US Supreme Court ruled that the President had overstepped his executive authority by imposing sweeping, country-specific tariffs without sufficient congressional oversight. Legal experts and trade partners initially hailed the verdict as a “Day of Liberation,” suggesting that the legal basis for Trump’s aggressive trade barriers had been permanently dismantled.

The court’s decision specifically targeted the lack of constitutional grounding for previous levies, leading to a “free fall” in the administration’s trade strategy. However, the victory for free-trade advocates proved short-lived. Trump reacted to the “judicial overreach” by invoking the Trade Act of 1974—a decades-old law—to bypass the ruling and implement a new, uniform global tariff.

From 10 to 15 Per Cent: The Weekend Escalation

In a rapid-fire series of announcements between Friday and Sunday, the President’s position hardened significantly:

• The Initial Pivot: Following the court ruling, Trump first announced a 10 per cent “universal basic tariff” on all imports to replace the struck-down measures.
• The Escalation: By Saturday evening, citing the need to protect US industry from “foreign retaliation,” Trump raised that figure to 15 per cent.
• The Legal Loophole: The administration is now relying on Section 122 of the Trade Act of 1974, which allows for temporary import surcharges of up to 150 days during “adverse” balance-of-payments situations.

Impact on the German and EU Economy

The European Union has reacted with a mixture of outrage and legal preparation. Bernd Lange, Chairman of the EU Trade Committee, noted that the transatlantic trade pact is now “history.” The EU is currently reviewing the potential for massive clawback claims, as the University of Pennsylvania estimates that the US government may owe billions in refunds for tariffs now deemed unconstitutional.

Historical Context: Trump’s Protectionist Evolution

This latest confrontation is the culmination of a strategy that began during Trump’s first term (2017–2021) and has intensified since his return to the White House last year. His trade policy has consistently aimed to reduce the US trade deficit, which stood at $345 billion with China alone during his first term.

Economic Fallout: Growth Slows as Uncertainty Mounts

The timing of the tariff hike is particularly sensitive. Recent data shows that US economic growth lost significant momentum at the end of 2025, with GDP rising much less than experts had anticipated. While Trump argues that tariffs will revive domestic manufacturing, critics point to the “Smoot-Hawley” era of the 1930s as a warning that such measures often lead to retaliatory cycles and global depression.

The “Non-Tariff” Battleground

Beyond the 15 per cent levy, the administration continues to pressure the EU to remove “non-tariff barriers.” These include national standards, import quotas, and environmental regulations that the White House views as disguised protectionism against American goods.

Frequently Asked Questions (FAQ)

Why did the Supreme Court strike down the tariffs?

The court ruled that the President lacked the constitutional authority to impose broad, länderspezifische (country-specific) tariffs without a clearer mandate from Congress, declaring central parts of the policy unconstitutional.

How can Trump impose new tariffs after the ruling?

The President is utilizing the Trade Act of 1974, specifically provisions intended for balance-of-payments emergencies. This allows for a temporary 150-day surcharge, though its long-term legality is already being challenged.

What does this mean for German car exports?

A 15 per cent across-the-board tariff would significantly increase the price of German vehicles in the US market. German industry leaders have warned that this could lead to a “decline in prosperity” and forced shifts in production locations.

Will the EU retaliate?

The EU has stated it will insist on the adherence to existing trade agreements. If the 15 per cent tariff is enforced, the EU is expected to launch counter-measures and legal challenges through the World Trade Organization (WTO) and US domestic courts.