President Donald Trump raised his newly imposed global tariff from 10 percent to 15 percent on February 21, intensifying a constitutional confrontation with the judiciary over presidential trade powers. The move came just one day after Trump signed a 10 percent global import surcharge and only days after the United States Supreme Court struck down his earlier tariffs in a landmark 6-3 ruling that found the president had violated federal law by imposing unilateral trade barriers without congressional approval.
The Supreme Court ruled that Trump had overstepped his authority by using the International Emergency Economic Powers Act to justify sweeping global tariffs. The majority opinion held that the power to levy taxes and duties lies exclusively with Congress under the Constitution. In a decisive 6-3 decision, the justices determined that the administration had improperly invoked emergency powers to circumvent established legislative processes for setting trade policy.
In direct response to the ruling, Trump turned to a different legal mechanism. He invoked Section 122 of the Trade Act of 1974, which grants the president authority to impose a temporary import surcharge of up to 15 percent for a maximum of 150 days to address balance-of-payments deficits. Trump first signed an executive order on February 20 establishing a 10 percent global tariff under this provision, then escalated it to the maximum allowable 15 percent the following day, declaring the increase effective immediately.
Financial markets reacted sharply to the tariff escalation. Bitcoin plunged more than 5 percent following the announcement, dropping from approximately $67,600 to around $64,700 in under two hours. Global equity markets also fell, with trading partners around the world expressing concern about the potential impact on international commerce. Economists warned that the tariffs could raise consumer prices and disrupt supply chains across multiple industries.
A Washington Post-ABC News-Ipsos poll released amid the trade turmoil shows that six in ten Americans disapprove of Trump's overall performance, with majorities saying the president has overreached the authority of his office. The poll reflects growing public unease with the administration's approach to executive power, particularly on economic matters that directly affect household budgets.
Legal experts have raised questions about whether the new tariffs imposed under Section 122 will also face court challenges. Some constitutional scholars have noted that the 1974 law was designed for targeted, temporary trade adjustments rather than broad global tariffs, and that using it to replace tariffs already struck down by the Supreme Court could invite fresh litigation. Trade law analysts suggested that affected industries and foreign governments may file legal challenges within weeks.
The escalation marks one of the most significant clashes between the executive and judicial branches over trade policy in modern American history. As global markets continue to absorb the shock and trading partners weigh their responses, the situation remains fluid. Congressional leaders from both parties have called for hearings on presidential trade authority, signaling that the debate over tariff powers is far from settled.
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