New global tariffs: Trump’s New 10% Global Tariff Takes Effect at Lower Rate Than Announced

New global tariffs introduced by Donald Trump have officially come into force at a 10% rate; lower than the 15% figure the US president suggested over the weekend.

According to official documents, the 10% levy began on Tuesday, with no directive issued to raise the rate further. The White House has not yet provided clarification on whether an increase remains under consideration.

Confusion After Supreme Court Ruling

The latest tariff move follows a ruling by the Supreme Court of the United States, which last week blocked many of Trump’s broader import taxes. In a 6–3 decision, the court found that the president had overstepped his authority by using the International Emergency Economic Powers Act (IEEPA) to impose sweeping global tariffs.

In response, Trump signed an executive order on Friday invoking Section 122 of the Trade Act of 1974, which allows a president to introduce tariffs of up to 15% for 150 days without congressional approval.

Although Trump initially said the temporary tariff would be set at 10%, he later indicated it would rise to 15%. However, the published order confirms the rate remains at 10%.

Economic Concerns and Trade War Risks

Carsten Brzeski, an analyst at ING, described the shifting announcements as adding to “chaos and mess” for businesses.

“In terms of uncertainty we’re back to where we were last year,” he told the BBC, warning that the risk of retaliation from US trading partners is rising.

He added that the likelihood of a full-scale trade war escalation is now higher than before.

Trade Deficit at Record Levels

Trump has long argued that tariffs are necessary to reduce the US trade deficit — the gap between imports and exports. However, recent figures show the deficit widened by 2.1% compared to 2024, reaching approximately $1.2 trillion (£890bn).

The US has already collected at least $130bn in tariffs under the IEEPA framework, according to official data.

The executive order introducing the new 10% levy states it is intended to “address fundamental international payments problems” and rebalance trade relationships to benefit American workers, farmers and manufacturers.

New global tariffs: Global Reaction Mounts

The Supreme Court’s decision has prompted uncertainty among US trading partners.

The United Kingdom signalled that reciprocal measures were “not off the table” if Washington fails to honour existing agreements, though officials stressed that “no one wants a trade war.”

The European Union has suspended ratification of a recent trade deal while seeking clarification from US authorities. Brando Benifei, chair of the European Parliament’s delegation for relations with the US, said countries may need to coordinate their response if conditions worsen.

India has also deferred previously scheduled talks aimed at finalising a recent trade agreement with Washington.

Political Pushback

Trump has sharply criticised the Supreme Court’s ruling, calling it “ridiculous” and “extraordinarily anti-American.” On Monday, he warned that countries that “play games” with trade deals could face even higher tariffs.

With the new 10% rate now active, businesses and global markets are watching closely to see whether the administration moves to increase the levy — or whether further legal challenges and diplomatic tensions reshape the policy once again.

Source: BBC.com

Also read: Trump Announces 10% Tariffs on European Allies Over Greenland Pressure Campaign