US President Donald Trump’s new global tariffs have officially taken effect at 10%, lower than initially promised. The move comes after the Supreme Court blocked some of his broader import tax plans last Friday.
Trump initially announced a 10% global tariff, then suggested it could rise to 15%. Official documents, however, show the rate started at 10% from Tuesday, with no immediate instructions to raise it. A White House official told Reuters that the administration is working to update the rate to 15%, but the timing remains unclear.
Businesses Face Uncertainty
Carsten Brzeski, an analyst at investment bank ING, said the rapid changes “add to the chaos and mess” for businesses. He warned that the risk of a full-scale trade war is now higher than last year.
Trump’s executive order Friday stated the temporary 10% duty is meant to “address fundamental international payments problems and continue the Administration’s work to rebalance trade relationships in favor of American workers, farmers, and manufacturers.” The tariffs are being applied under Section 122 of the 1974 Trade Act, allowing the president to impose them for 150 days without Congress approval.
Trade Deficit Concerns
The president argues tariffs help reduce America’s trade deficit, which reached $1.2 trillion last year, up 2.1% from 2024. The US has already collected at least $130 billion in tariffs using the 1977 International Emergency Economic Powers Act (IEEPA).
However, the Supreme Court ruled last Friday that Trump overstepped his authority with IEEPA-based tariffs. This raises the chance for businesses to claim refunds. FedEx has already filed for a “full refund” on taxes paid, and campaign group We Pay The Tariffs represents over 900 US companies demanding refunds.
Experts doubt the government will return the money quickly, with Trump warning the matter could be contested in courts for up to five years. Justice Brett Kavanaugh called the refund process “likely to be a mess.”
Mixed Reactions from Businesses
Fraser Smeaton, CEO of UK costume company Morph Costumes, said paying the 10% tariff instead of 20% is a relief. But uncertainty remains. His business imports products from China and exports to the US, and he has had to reserve funds in case of sudden tariff changes. Many companies, including his, are tracking payments to claim refunds on unlawful IEEPA tariffs.
Smeaton asked, “The fact that we’re at 10% rather than 20% is better, but will it stay that way?”
The fast-changing tariff policies have left businesses scrambling to adapt, with potential global trade repercussions looming.
