US imposes tariffs following Supreme Court decision

New US tariffs on imported goods took effect on Tuesday as President Donald Trump moved to advance his trade agenda following a Supreme Court ruling that struck down several of his global duties.

According to a White House statement released Friday, the tariffs, initially set at 10%, are intended “to address the large and serious United States balance-of-payments deficits.” Trump has signaled plans to raise the rate to 15%, while maintaining exemptions for goods covered by sector-specific investigations and under the US-Mexico-Canada trade agreement.

Although the Supreme Court on Friday invalidated many of Trump’s sweeping tariffs, his targeted duties on products such as steel and automobiles remain in place. The ruling, however, opens the door to potential disputes over refunds for tariffs previously imposed.

The new 10% duty, effective Tuesday, will last 150 days unless extended by Congress, and is seen as an interim measure toward a more permanent trade strategy. US Customs and Border Protection confirmed it would stop collecting tariffs struck down by the court and begin enforcing the new 10% duties simultaneously.

The conservative-majority Supreme Court ruled six to three that Trump had exceeded his authority under a 1977 law to impose sudden tariffs on specific countries.

Erica York, vice president of federal tax policy at the Tax Foundation, estimated that the new tariffs would apply to $1.2 trillion in imports annually, or roughly 34% of total US imports. She added that Trump’s previous tariffs raised the average US household’s tax burden by $1,000 in 2025, while current and new duties are expected to impose a $700 household burden in 2026.

Trump maintained on Monday that the Supreme Court decision gave him “far more powers and strength” to act against foreign countries, including through the use of licensing mechanisms. Wendy Cutler, former US trade official and senior vice president at the Asia Society Policy Institute, commented that with his “tariff wings clipped,” Trump may rely on licensing fees to signal displeasure, though such measures lack the direct financial impact of tariffs.

The president also warned of potential increases in tariffs on countries he perceives as “playing games” following the court ruling. Over the past year, Trump has adjusted tariff rates on partners frequently, using them as leverage in trade negotiations.

US Trade Representative spokesperson Jamieson Greer stated that existing tariff agreements remain valid despite the ruling and that partners are expected to honour them. However, the proposed 15% duty for some nations, including the UK and Australia, would exceed the previous 10% rate.

Cutler noted that Trump’s measures could heighten frustration among US trade partners and potentially accelerate their efforts to diversify away from reliance on the United States.