Fears of a sustained and deepening global trade war intensified Saturday after President Trump announced a 15% universal tariff on all imports, brushing aside both a Supreme Court ruling against his previous trade authority and urgent calls from European leaders for economic stability and predictability.
The new tariff, announced via Truth Social, draws on Section 122 of the Trade Act of 1974 — a provision never previously invoked — which allows tariffs of up to 15% for 150 days without congressional authorization. Trump declared it effective immediately and pledged his administration would use the period to develop a permanent, legally durable tariff framework. The announcement deepened anxiety in financial capitals around the world.
The Supreme Court had ruled 6-3 on Friday that Trump’s IEEPA-based tariffs were unconstitutional, requiring congressional approval the president had not sought. Trump’s response was explosive. He branded the ruling “ridiculous” and “anti-American,” attacked majority justices as “fools and lapdogs,” and reserved particularly sharp criticism for his own nominees Barrett and Gorsuch, describing them as “an embarrassment to their families.”
European leaders issued urgent warnings. Germany’s Chancellor Merz called tariff instability “the biggest poison” for transatlantic economies and announced a planned trip to Washington with a unified European position. France’s Macron praised the court’s original ruling as an affirmation of democratic governance and called for fair, reciprocal trade rather than executive unilateralism. The UK faces renewed uncertainty after its 10% arrangement was superseded.
Approximately 90% of the $130 billion in tariffs collected under the now-invalidated IEEPA framework has been borne by American businesses and consumers. Business groups worldwide are warning of further damage to trade, investment, and economic growth. Exemptions apply to critical minerals, metals, pharmaceuticals, and USMCA-compliant goods from Canada and Mexico.