US President Donald Trump’s new global tariffs officially took effect at a 10% rate, even though he had previously indicated that a higher rate would be imposed. The announcement follows a series of rapid developments after the US Supreme Court blocked many of the administration’s broader import tax measures.
Initially, President Trump stated that a 10% global tariff would be implemented. A day later, he suggested the rate would increase to 15%. However, official government documentation confirms that the tariffs began at 10% on Tuesday, with no formal directive issued to raise the rate.
White House Response and Policy Adjustment
The White House has not immediately clarified the discrepancy. According to a senior administration official speaking to Reuters, work is underway to update the tariff level to 15% in line with the president’s remarks. No timeline has been provided for when or if that adjustment will take effect.
The evolving announcements have created uncertainty among businesses and financial markets. Carsten Brzeski, an economist at ING, described the situation as adding to ongoing instability. He warned that unpredictable changes in tariff policy could raise the risk of retaliatory measures from US trading partners.
Brzeski noted that the possibility of an escalating trade conflict now appears greater than it was the previous year, with heightened concerns about a broader tariff war.
Legal Basis for the 10% Tariff
An executive order signed on Friday clarified that the temporary 10% import duty is designed to address what the administration describes as structural imbalances in international payments and trade relationships. The stated objective is to support American workers, farmers, and manufacturers.
The administration is applying the measure under Section 122 of the Trade Act of 1974, which permits the president to impose import charges for up to 150 days without congressional approval.
President Trump has consistently argued that tariffs are necessary to narrow the United States’ trade deficit—the gap between imports and exports. However, official data shows that the deficit expanded by 2.1% compared to the previous year, reaching approximately $1.2 trillion.
Supreme Court Ruling and Refund Demands
The recent tariff developments come after the Supreme Court ruled that the president exceeded his authority when imposing sweeping tariffs last year under the 1977 International Emergency Economic Powers Act (IEEPA). That decision opened the door for businesses to potentially claim billions of dollars in refunds.
To date, the US government has collected at least $130 billion in tariffs under IEEPA authority. The ruling has prompted legal action from several companies.
Global logistics giant FedEx has filed a lawsuit seeking a full refund of import taxes it paid under IEEPA. Meanwhile, a campaign group called “We Pay The Tariffs” claims to represent more than 900 American businesses demanding automatic and rapid reimbursement of what they consider unlawful tariff payments.
Despite these efforts, analysts are skeptical about the likelihood of large-scale refunds. President Trump has indicated that legal battles over refunds could continue for years. Justice Brett Kavanaugh acknowledged in the ruling that any refund process would likely be complicated and difficult to administer.
The president has sharply criticized the Supreme Court’s decision, describing it as flawed and harmful to American interests.
Business Reaction: Relief Mixed With Concern
Manufacturing and Retail Impact
Businesses affected by the Trump global tariff rate have expressed cautious relief that the initial rate is 10% rather than 20%. However, many remain concerned about the policy’s unpredictability.
Fraser Smeaton, chief executive of UK-based costume company Morph Costumes, explained that his firm manufactures in China and exports to the United States. The company pays the applicable tariff rate on Chinese goods.
He noted that uncertainty has forced the business to set aside funds in case tariff policies change unexpectedly, limiting its ability to invest more aggressively. While the 10% rate is lower than feared, he questioned whether it would remain stable.
Like many companies, Morph Costumes is tracking tariff payments carefully as it seeks refunds for IEEPA-related charges.
Lower-Cost Goods Less Affected
Daniel Graham, managing director of tea company Birchall, said the reduced rate is positive but expressed frustration over frequent changes. Birchall imports tea from Africa, packages it in the UK, and exports to markets including the US.
Because tea is relatively low-cost compared to products like vehicles or industrial equipment, Graham said the impact of tariffs has been manageable so far. However, he acknowledged that significantly higher tariff levels could push the company to consider alternative markets.
International Reactions and Trade Relations
Following the Supreme Court ruling, President Trump warned that countries attempting to renegotiate or challenge trade agreements could face higher tariffs.
Governments worldwide are reassessing their trade positions in light of the legal decision and shifting US tariff policy.
The United Kingdom’s Business and Trade Secretary, Peter Kyle, expressed confidence that the 10% baseline tariff agreement between the UK and US would remain intact. He described the deal as the best achievable outcome under current conditions and said core negotiated terms were still valid.
The agreement includes preferential arrangements for certain industries such as automotive manufacturing and aviation.
Kyle described higher tariffs as a “lose-lose” outcome for both American and British businesses, though he indicated that the UK remains interested in pursuing a comprehensive trade agreement with the US.
The European Union has temporarily paused ratification of a previously negotiated deal, stating it would respond if conditions worsen. EU officials have requested additional clarity from Washington regarding the tariff framework.
India has also postponed scheduled discussions aimed at finalizing a recent trade agreement, citing the need for further evaluation.
What Comes Next?
The Trump global tariff rate of 10% is now officially in force, but uncertainty remains over whether it will increase to 15% as previously indicated. Businesses, investors, and governments are closely watching for formal updates from the White House.
With legal challenges ongoing and refund claims mounting, the future direction of US trade policy remains unsettled. The coming weeks will likely determine whether the current 10% tariff represents a temporary measure or the beginning of a renewed escalation in global trade tensions.
