US President Donald Trump’s new global tariffs have taken effect at 10%, lower than his earlier pledge of a higher rate, after the Supreme Court blocked many sweeping import taxes. Although Trump later mentioned a 15% rate, official documents show the 10% duty was implemented from Tuesday. The White House has been asked for comment.

Carsten Brzeski of ING said the shifting policy added to “chaos and mess,” increasing uncertainty for businesses and raising the risk of retaliation from US trading partners and a possible escalation into a full trade war.

Trump warns of higher tariffs after court blocks levies

An executive order signed Friday said the temporary 10% duty aims to address international payments imbalances and rebalance trade to benefit American workers, farmers and manufacturers. The levy is imposed under Section 122 of the 1974 Trade Act, allowing a 150-day tariff without congressional approval.

Trump argues tariffs are needed to shrink the US trade deficit, which rose 2.1% from 2024 to about $1.2 trillion (£890bn). The US has already collected at least $130bn in tariffs under the 1977 IEEPA, recent data show.

The court ruled Friday Trump exceeded authority using IEEPA, raising prospects of billions in refunds. FedEx has sued for a full refund, while campaign group We Pay The Tariffs says it represents 900 firms seeking automatic refunds. Experts doubt repayments, and Trump said the issue could be litigated for five years. Justice Brett Kavanaugh warned the refund process could be a “mess.”

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Trump criticised the ruling as “ridiculous” and “anti-American” and warned countries “playing games” with trade deals could face higher tariffs. The United Kingdom said reciprocal action was possible if agreements are not honoured, though it stressed no one wants a trade war. The European Union paused ratification of a summer deal, with MEP Brando Benifei urging clarity and coordinated response. India also deferred talks to finalise a recent agreement.