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Donald Trump’s Global Tariffs Begin at 10%, Lower Than Promised
New global tariffs introduced by US President Donald Trump have officially taken effect at a 10% rate, despite earlier indications that they would be set higher.
Following a ruling by the Supreme Court of the United States last Friday that blocked large parts of his previous import tax regime, Trump initially said a 10% worldwide tariff would be imposed. A day later, he suggested the rate would rise to 15%.
However, official documentation shows that the tariffs came into force on Tuesday at 10%, with no formal instruction issued to raise them. The White House has been approached for clarification.
Carsten Brzeski, an analyst at investment bank ING, said the shifting policy had added to uncertainty for businesses. “It simply adds to the chaos,” he said, warning that the risk of retaliation from US trading partners had increased. “The chances of a full-scale trade war are now higher than last year.”
An executive order signed by Trump on Friday said the temporary 10% duty was designed to address international payment imbalances and support American workers, farmers, and manufacturers. The levy is being imposed under Section 122 of the 1974 Trade Act, which allows tariffs to be applied for up to 150 days without congressional approval.
Trump has repeatedly argued that tariffs are needed to shrink the US trade deficit, but the gap recently widened by 2.1% compared with 2024, reaching about $1.2 trillion (£890bn).
The US has already collected at least $130bn in tariffs under the 1977 International Emergency Economic Powers Act (IEEPA). Last week, the Supreme Court ruled that Trump had exceeded his authority by using that law to impose sweeping tariffs, opening the door to potential refund claims worth billions of dollars.
Logistics giant FedEx has since filed a lawsuit seeking full reimbursement of tariffs paid under the IEEEPA. Campaign group We Pay The Tariffs says it represents more than 900 US companies calling for automatic refunds, though experts say repayments are unlikely. Trump has said legal battles could drag on for years, while Justice Brett Kavanaugh warned the refund process would likely be “a mess.”
Trump strongly criticised the court’s ruling, calling it “ridiculous” and “anti-American.”
Business reaction
UK-based Morph Costumes, which manufactures in China and exports to the US, said the lower-than-expected tariff was welcome but offered little reassurance. Chief executive Fraser Smeaton said uncertainty had forced the company to hold back investment. “Ten percent is better than 20%, but will it last?” he asked.
Daniel Graham, managing director of British tea firm Birchall, echoed similar concerns. “It’s good news that the rate is lower, but bad news that it keeps changing,” he said, adding that extreme increases could push the business to explore alternative markets.
Global response
On Monday, Trump warned that countries he accused of “playing games” with trade agreements could face higher tariffs. Governments worldwide are now reassessing their trade positions.
The UK said no retaliatory measures were off the table if the US failed to honour its agreement, though officials stressed they wanted to avoid a trade war. The European Union said it would pause ratification of a summer trade deal, while India announced it would delay talks on finalising its own agreement with Washington.
European Parliament trade chair Brando Benifei said countries needed to act collectively if conditions worsened. “If we get worse terms, we must respond,” he said, calling for greater unity among affected nations.
