Trump Raises Tariffs, Warns of Long Legal Battle Over Refunds for Businesses

Businesses hoping for relief after the Supreme Court struck down President Trump’s tariff authority got unwelcome news Saturday on two fronts: Trump announced a new 15% universal tariff, and signaled that any refunds from the $130 billion already collected would come only after a lengthy and uncertain legal battle.
The new tariff draws authority from Section 122 of the Trade Act of 1974, allowing up to 15% for 150 days without congressional approval. Trump portrayed the move as both legitimate and essential, accusing other nations of exploiting the United States for years. His Truth Social announcement declared the new rate in effect immediately.
Top business associations had been pushing for reimbursements after the Supreme Court ruled 6-3 on Friday that IEEPA-based tariffs required congressional authorization that was never obtained. Research shows around 90% of the $130 billion collected has been paid by American businesses and consumers, making refunds a top priority for industry groups. Trump’s remarks squashed those hopes in the near term.
Internationally, European leaders responded with concern. Germany’s Chancellor Merz announced plans to visit Washington with a unified European position, warning that tariff uncertainty was acting like poison for business investment and planning. France’s Macron used the moment to celebrate the value of an independent judiciary, calling it essential in democratic societies.
The new 15% rate excludes critical minerals, metals, pharmaceuticals, and USMCA-compliant goods from Canada and Mexico. Sector-specific tariffs on steel, aluminum, lumber, and autos are unaffected by the Supreme Court’s ruling. Whether the new 1974 law provision withstands legal challenges is a question that may soon reach the courts.