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Trump's 15% Tariff Hike Sparks Chaos After Supreme Court Ruling

Markets surged after the Supreme Court blocked Trump's tariffs—until his 15% hike sent shockwaves through Europe and Wall Street. What's next for businesses?

,   and  Administrator
2 min read
The image shows a graph on a white background with text that reads "U.S. Trade in Goods with...
The image shows a graph on a white background with text that reads "U.S. Trade in Goods with China". The graph displays the number of US trade in goods with China over a period of time, with the x-axis representing the years and the y-axis indicating the amount of trade. The graph is divided into two sections, one for imports and one for exports, and each section is further divided into different colors, indicating the different levels of trade between the two countries.

Trump's 15% Tariff Hike Sparks Chaos After Supreme Court Ruling

The U.S. Supreme Court struck down most of Donald Trump's latest tariffs on February 20, 2026, calling them illegal under the IEEPA. Stock markets responded positively, with the Dow Jones, S&P 500, Nasdaq, and DAX all rising. Yet uncertainty quickly returned as Trump announced even stricter business tariffs just hours later.

The Supreme Court's ruling invalidated many of Trump's border tariffs, prompting a brief market rally. The Dow Jones climbed 0.47-0.5% to 49,626 points, while the S&P 500 rose 0.7% to 6,910. The Nasdaq gained 0.9% to 22,890, and Germany's DAX increased by 0.87% to 25,260.

But the relief was short-lived. Less than a day after the court's decision, Trump raised the tariff rate from 10% to 15% via his personal social media account. The new 15% tariffs, set to begin on February 23, 2026, will apply to nearly all imports, including key goods from the EU. Europe, already facing weakened sales in the U.S., now braces for further disruption.

Trump's announcement cited input from unnamed 'advisers' and 'senior officials,' though critics argue his team lacks clear solutions to the fallout. American importers may now sue for refunds on previously paid illegal tariffs, while consumers could see price hikes as businesses pass on the costs. Global supply chains remain under strain, with EU exporters particularly vulnerable.

The U.S. budget deficit stands at 6% of GDP—a figure that would likely trigger sanctions if recorded by an EU member state. Meanwhile, allies in Europe and beyond have expressed frustration over Washington's unpredictable trade policies, which continue to sow confusion on the world stage.

The Supreme Court's ruling provided temporary market stability, but Trump's immediate escalation has prolonged economic uncertainty. With new 15% tariffs looming, businesses and consumers face rising costs, legal disputes, and ongoing supply chain disruptions. The U.S. deficit and strained alliances add to the challenges ahead.

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