Economy February 21, 2026

White House Moves to Lift Global Tariff to 15% After High Court Limits Emergency Authority

President announces immediate increase to 15% worldwide tariff following Supreme Court ruling that curtailed emergency tariff powers

By Marcus Reed
White House Moves to Lift Global Tariff to 15% After High Court Limits Emergency Authority

President Donald Trump announced an immediate raise of a temporary global tariff from 10% to 15% after the Supreme Court found that the International Emergency Economic Powers Act does not permit sweeping tariff actions. The administration's move, permitted under existing trade law for up to 150 days, comes amid ongoing market sensitivity to trade policy and questions about legal challenges and potential large-scale tariff refunds.

Key Points

  • The president announced an immediate increase in a temporary worldwide tariff from 10% to 15%.
  • The Supreme Court ruled 6-3 that the IEEPA does not authorize broad presidential imposition of tariffs, reinforcing Congress' role in trade policy.
  • The 15% tariff can remain in place for up to 150 days under current trade law and the White House is pursuing alternative legal routes such as Section 122 and Section 301 tariffs.
  • Apparel and retail stocks rose after the court ruling as investors eyed reduced tariff pressure, a development analysts said could briefly ease inflation concerns and support risk assets.

President Donald Trump said on Saturday that he will raise a temporary global tariff rate from 10% to 15%, effective immediately, after the Supreme Court limited the scope of his emergency tariff program. The decision by the high court, handed down in a 6-3 vote, determined that the International Emergency Economic Powers Act (IEEPA) does not give the president broad authority to impose sweeping tariffs, reinforcing Congress' role in tax and trade policy.

In a post on Truth Social, the president said: "I, as President of the United States of America, will be, effective immediately, raising the 10% Worldwide Tariff... to the fully allowed, and legally tested, 15% level," and added that many countries had been "ripping" the U.S. off for decades.

Under existing trade statutes, the newly announced higher tariff can remain in place for up to 150 days, though the move may prompt legal challenges. The administration's declaration follows a court ruling that curtailed one avenue for imposing tariffs, but the White House has signaled it is exploring alternative legal tools, including tariffs under Section 122 and Section 301. Those parallel paths suggest policy uncertainty could persist even after the Supreme Court's restriction.


Markets reacted strongly to the Supreme Court ruling on Friday before the president's announcement, with apparel and retail stocks rising as investors anticipated easing tariff pressures. Analysts said the decision could briefly temper inflation concerns and cut some trade-related uncertainty, outcomes that may support risk assets in the short term.

Despite that initial market relief, experts cautioned that the uplift might be temporary. Some strategists have raised unresolved questions about potential tariff refunds tied to the court's decision. Those refunds could exceed $175 billion, according to analysis cited by market watchers, and carry implications for fiscal policy and market liquidity should they materialize.

The administration's pivot to alternative legal authorities and the potential for large-scale refunds underscore how trade policy remains a principal macroeconomic risk for investors. Financial markets are likely to monitor subsequent legal filings and policy moves closely in the coming days and weeks, seeking clarity on the operational and liquidity impacts of these developments.


The combination of a legally constrained emergency tariff mechanism, an immediate presidential adjustment to the tariff level, and ongoing exploration of other tariff authorities has placed trade policy back at the center of market attention. For sectors sensitive to import costs - notably apparel and retail, which already showed price-sensitive stock moves - the prospect of renewed or redirected tariff measures will be a near-term focus for investors and supply chain managers alike.

At the same time, outstanding legal and fiscal questions - including the scope and timing of any refunds and the likelihood of court challenges to the 15% adjustment - create an environment of continued uncertainty for markets and policymakers.

Risks

  • The administration's tariff increase may face legal challenges, creating further policy and market uncertainty - impacting sectors sensitive to trade policy.
  • Unresolved questions about potential tariff refunds, which could exceed $175 billion, pose risks to fiscal balances and market liquidity.
  • Ongoing pursuit of alternative legal authorities for tariffs (Section 122 and Section 301) suggests continued uncertainty for markets and supply chains, particularly retail and import-dependent industries.

More from Economy

Merz Says No Further Relaxation of Germany's Debt Brake Before 2029 Election Feb 21, 2026 White House Raises Global Import Tariff to 15% Following Supreme Court Decision Feb 21, 2026 Supreme Court IEEPA Ruling Offers Limited Lift for Apparel and Footwear Stocks, Evercore Says Feb 21, 2026 Court Rejection of IEEPA Tariffs Narrows Near-Term Duty Revenue, Spurs Market Watchfulness Feb 21, 2026 BCA: A 10% Slide in Stocks Could Meaningfully Curtail U.S. Consumption Feb 21, 2026