Brisbane, Feb 22 — President Donald Trump announced that the United States will raise its baseline tariff on imports from all countries to 15 percent after the Supreme Court ruled that his earlier use of emergency powers to impose broad “reciprocal tariffs” under the International Emergency Economic Powers Act (IEEPA) was unlawful. The move shifts his administration to a different statutory route to keep the trade agenda moving while the government explores longer-term options.
Last year Mr. Trump invoked IEEPA, arguing trade imbalances amounted to a national emergency and imposing wide-ranging tariffs. The Supreme Court found IEEPA did not grant authority for such sweeping measures, prompting sharp criticism from the former president, who called the Democratic justices who ruled against him a “disgrace” and expressed disappointment in conservative justices who joined the majority. He also acknowledged he had relied on emergency powers to speed the process and that pursuing other legal paths would take longer.
The new measure relies on a different provision that appears to allow tariffs of up to 15 percent for a maximum of 150 days. The administration says it will use this five-month window to investigate more durable legal methods to sustain higher tariffs beyond that temporary period.
Officials have flagged Section 301 of the Trade Act of 1974 as one possible pathway. Section 301 permits the president to impose tariffs on countries that breach trade agreements or engage in practices harmful to U.S. commerce, but it requires a detailed investigation and consultations with affected trading partners — a process that can be lengthy. Section 301 was previously used in 2018 in tariffs on China after an investigation by the U.S. Trade Representative.
Another option is Section 232 of the Trade Expansion Act of 1962, which authorises tariffs on specific sectors if imports are found to threaten national security. That authority was used in 2018 for steel and aluminium but is product-specific and cannot justify blanket tariffs; its prior application was challenged at the World Trade Organization.
A major unresolved issue is refunds. Because the Supreme Court deemed tariffs collected under IEEPA unlawful, up to US$175 billion could potentially be repaid. The court did not clarify the refund mechanism, likely leaving disputes to lower courts, including the U.S. Court of International Trade; some companies, such as Costco, have already sought refunds in anticipation of the ruling.
For Australia, the rise from 10 to 15 percent temporarily evens the field with other nations. Although exporters do not directly pay U.S. tariffs, they may face pressure to absorb costs and lose competitiveness. Reports say some sectors — including beef, critical minerals, energy products and pharmaceuticals — have been exempted. Despite assertions that certainty has returned, significant legal and economic uncertainty remains.
Original Source: https://theshillongtimes.com/2026/02/23/trump-raises-global-tariffs-to-15-after-sc-setback/
Category: INTERNATIONAL
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Publish Date: 2026-02-23 05:38:00
