Uncertainty looms as new Trump tariffs kick in at 10% – EU calls for “full clarity”
US President Donald Trump’s new global tariffs have come into effect today (24 February) at 10 per cent despite an earlier indication from the president that the rate could be set higher.
This follows the ruling by the Supreme Court of the United States, which invalidated tariffs imposed under the International Emergency Economic Powers Act (IEEPA).
After the Court’s decision on Friday 21 February, the president signed a proclamation imposing a 10 per cent tariff on virtually all merchandise imported into the United States under Section 122 of the Trade Act of 1974. He subsequently indicated the rate could rise to 15 per cent.
Today, the tariff has come into effect at 10 per cent and will remain in place for 150 days. Any extension beyond that period would require congressional approval under Section 122 authority.
Bloomberg is reporting that the White House is working on a ‘formal order that will increase the global tariff rate to 15 per cent’, according to an administration official.
UK reacts to shift in tariffs
William Bain, head of trade policy at the British Chambers of Commerce (BCC), says: “While a new 10 per cent US tariff rate, instead of the threatened 15 per cent, will provide some relief it shows how difficult it is for businesses to plan ahead.
“It is far from clear what will happen next, and whether a higher tariff rate is still on the way. Despite the immediate reprieve, there is fresh uncertainty for UK firms exporting goods to the US.
“This makes it very difficult for firms to understand the prices and margins they will be able to secure for their goods, currently under production, for export in several months’ time. Inevitably this will have an impact on their sales and hit the economy.
“The BCC has provided government with a six-point plan to guard against the worst economic outcomes from the new tariffs and potential further hikes.”
Carsten Brzeski, global head of macro at investment bank ING, discussed the fast-changing tariffs on the BBC’s Today programme, saying: “I think it simply adds to the chaos and mess. In terms of uncertainty we’re back to where we were last year.”
EU seeks clarity after US Supreme Court strikes down IEEPA tariffs
In a statement issued on 22 February, the European Commission (EC) yesterday called for “full clarity” from Washington regarding the implications of the ruling and whether the EU-US joint statement of August 2025 will continue to be upheld.
The decision has introduced renewed uncertainty into global trade, particularly for those countries that had agreed bilateral deals with the United States – including the EU, Britain, and Japan – now seeking clarity as to whether the deals will be upheld.
The EC notes that the current situation is not ‘conducive to delivering fair, balanced, and mutually beneficial transatlantic trade and investment’, as agreed to by both sides in the EU-US joint statement in August 2025.
The commission says that EU companies and exporters must have fair treatment, predictability and legal certainty.
The statement from the EC continues: ‘A deal is a deal… the EU expects the US to honour its commitments set out in the joint statement – just as the EU stands by its commitments.
‘In particular, EU products must continue to benefit from the most competitive treatment, with no increases in tariffs beyond the clear and all-inclusive ceiling previously agreed.’
The EC confirmed it remains in close contact with the US administration. On 21 February, EU trade commissioner Maroš Šefčovič spoke with US trade representative Jamieson Greer and commerce secretary Howard Lutnick. Brussels reiterated that its priority is to preserve a stable, predictable transatlantic trading environment while also acting as a global anchor for rules-based trade.
US marine industry assesses impact of Supreme Court decision
In the United States, marine manufacturers are closely watching how the Supreme Court’s decision will be implemented and whether affected businesses will receive refunds of previously collected IEEPA tariff revenues.
Frank Hugelmeyer, president and CEO of the National Marine Manufacturers Association (NMMA), described the ruling as significant for the recreational boating sector. “The Supreme Court’s decision today on the IEEPA tariffs is an important ruling on a topic that is of great importance to our members,” he says. “Approximately 95 per cent of the boats sold in this country are made right here in America. Boat manufacturers contribute $230 billion to the US economy and support more than 800,000 American jobs, many in small communities. Their continued success depends on stable access to global markets and a trade policy framework that is predictable and strategic. As we approach the nation’s 250th anniversary, we urge the administration and congress to advance policies that strengthen legacy American industries like recreational boat manufacturing.”
While the Court’s ruling prevents the administration from using IEEPA to impose tariffs, other trade authorities remain available, including Section 232 (national security) and Section 301 (unfair trade practices).
