US President Donald Trump’s new global tariffs have come into effect at 10% after the Supreme Court blocked many of his sweeping import taxes on Friday.
Just hours after last week’s ruling, the president signed an executive order to impose the new levy from 24 February.
The new tariff rate is lower than expected as Trump had said on Saturday he would impose a levy of 15%. However, an official directive to increase the rate has not yet been issued. The BBC has contacted the White House for comment.
“I think it simply adds to the chaos and mess,” said Carsten Brzeski, an analyst with investment bank ING, referring to the fast-changing tariffs and their effects on businesses.
“In terms of uncertainty we’re back to where we were last year,” he told the BBC’s Today programme, adding there was now a higher risk that the US’s trading partners would retaliate.
“The risk of a real fully-fledged tariff war – trade war – escalation is clearly higher than last year,” he said.
The executive order signed by Trump on Friday said the temporary import duty was intended to “address fundamental international payments problems and continue the Administration’s work to rebalance our trade relationships to benefit American workers, farmers, and manufacturers”.
The administration is applying the levy under Section 122 of the 1974 Trade Act, which allows the president to impose the charge for 150 days without congressional approval.
The president has argued that tariffs are necessary to reduce America’s trade deficit – the amount by which imports exceed exports. But the deficit reached a fresh high last week, widening by 2.1% compared to 2024 and hitting roughly $1.2 trillion (£890bn).
The US has already collected at least $130bn in tariffs using the 1977 International Emergency Economic Powers Act (IEEPA), according to the most recent official data.
“In terms of uncertainty we’re back to where we were last year,” he told the BBC’s Today programme, adding there was now a higher risk that the US’s trading partners would retaliate.
“The risk of a real fully-fledged tariff war – trade war – escalation is clearly higher than last year,” he said.
The executive order signed by Trump on Friday said the temporary import duty was intended to “address fundamental international payments problems and continue the Administration’s work to rebalance our trade relationships to benefit American workers, farmers, and manufacturers”.
The administration is applying the levy under Section 122 of the 1974 Trade Act, which allows the president to impose the charge for 150 days without congressional approval.
The president has argued that tariffs are necessary to reduce America’s trade deficit – the amount by which imports exceed exports. But the deficit reached a fresh high last week, widening by 2.1% compared to 2024 and hitting roughly $1.2 trillion (£890bn).
The US has already collected at least $130bn in tariffs using the 1977 International Emergency Economic Powers Act (IEEPA), according to the most recent official data.
By Anthony Solly
