US Treasury hints at global tariff hike to 15% as Trump’s trade policy backfires

The United States is expected to raise global tariffs to 15 percent in the coming days as the Trump administration tries to restore its controversial trade policies following a Supreme Court ruling that overturned the tariffs last year.

US Treasury Secretary Scott Bessent said higher tariffs “may” go into effect this week, suggesting the White House intends to push ahead with a tougher global trade regime despite legal challenges forcing officials to rethink their approach.

The new tariff will replace blanket import duties announced by Donald Trump last year, which imposed tariffs on goods from many countries. Those measures were struck down by the United States Supreme Court after the justices ruled that the administration exceeded its authority by using emergency powers to justify the tax.

The decision prompted a swift response from the White House, which introduced a new global tax of 10 percent using a different legislative approach. However, confusion soon followed after Trump said on social media that the rate would be set at 15 percent.

In fact, tariffs are starting to work at a lower level, leaving businesses and governments around the world uncertain about the direction of US trade policy.

Bessent’s latest comments suggest that the administration is now aiming to align policy with Trump’s previous statements by raising tariffs to the highest level allowed under the interim executive order.

Speaking to CNBC, Bessent said he believes prices will return to their previous levels within a few months. He pointed out that the court’s decision will not undermine the administration’s broader trade strategy or the amount of money that the US expects from imports.

“It is my strong belief that prices will return to their old levels within five months,” he said.

The White House has repeatedly dismissed the significance of the court’s decision, insisting it has several legal tools available to save the tax regime.

Officials say the policy is central to the administration’s economic plan, which aims to reduce the US trade deficit, boost domestic production and generate revenue to help deal with the country’s growing debt.

To implement the current tariff, the administration invoked Section 122 of the US Trade Act, a rarely used provision that allows the president to impose a tariff of up to 15 percent for up to 150 days without approval from Congress.

The authority is designed to deal with sudden balance of payments problems or large trade imbalances. Because it is rarely used in modern trade disputes, many legal experts consider the White House’s interpretation of the law to be untested.

Section 122 provides administrations with a temporary way to maintain prices while they develop a long-term legal framework for their trade policies.

The White House has indicated that once this 150-day window expires, it intends to rely on other legislation to introduce indefinite tariffs.

These include Section 301 of the Trade Act, which allows the US government to impose duties on countries suspected of unfair trade practices, and Section 232 of the Trade Expansion Act, which allows for tariffs on imports deemed to threaten national security.

Both provisions have been used by Trump before. During his first term in office, the administration imposed tariffs on steel and aluminum imports under Section 232 and used Section 301 to impose duties on billions of dollars worth of goods from China.

Officials have also explored using these powers in a variety of areas, including taxes on digital services, drug imports and car manufacturing.

Unlike the emergency powers enacted by the Supreme Court, these legal instruments require the government to follow formal procedures before imposing a tax.

This usually involves carrying out investigations into the industries concerned, presenting evidence to confirm the jobs and giving businesses a consultation period to submit feedback before new levies are introduced.

Many businesses say this more streamlined process would be better than the policy changes that have come after recent trade decisions.

Companies involved in international supply chains have repeatedly asked for greater clarity and predictability, saying that sudden tax announcements make it difficult to plan investments, adjust pricing strategies or secure long-term contracts.

The legal battle over taxes has also created significant financial uncertainty for the US government.

Companies that paid the initial fees before they were removed have started filing claims for refunds. Analysts estimate that the administration could face $130 billion worth of refund claims.

A study by the Cato Institute revealed that the government could incur huge interest costs again if those repayments are delayed.

According to the agency’s estimates, American taxpayers could be liable for an estimated $23 million in interest for the daily refunds to remain unpaid, which could reach nearly R700 million per month.

The dispute stems from the tax administration that was introduced during what Trump described as “Independence Day” in April last year.

Meanwhile, the administration imposed tariffs ranging from 10 percent to as high as 50 percent on imports from many countries. The move has sparked a wave of diplomatic negotiations as governments try to secure exemptions or lower tariffs by offering investment commitments and other agreements.

The surge in prices led to a legal challenge that eventually reached the Supreme Court, which ruled that the president’s use of emergency powers to justify these operations was unconstitutional during peacetime.

That decision forced the administration to restructure its trade policy using other legal authorities.

The 10 percent global tariff shift has temporarily leveled imports, removing benefits some trading partners had negotiated after the first “Independence Day” tariffs were announced.

Countries such as the United Kingdom had previously received lower tariffs as part of bilateral negotiations, and the introduction of a lower global tariff effectively erased those concessions.

The nearly 15 percent increase would mark another escalation in the administration’s trade policy, which could affect thousands of exporters and supply chains around the world.

Economists say the move could have far-reaching effects on global trade, especially if tariffs are extended or made permanent under other legal authorities.

Meanwhile, businesses and foreign governments are watching closely as Washington prepares its next steps in reshaping the US tax regime and redefining its approach to international trade.