Trump’s tariff rollout sparks confusion as rate set lower than promised
The United States has entered a new phase of trade uncertainty after President Donald Trump’s latest global tariffs came into effect at 10%, a rate lower than the 15% he pledged just days earlier. The discrepancy has raised questions about the administration’s direction and heightened fears of retaliation from trading partners.
The tariffs, announced through an executive order on Friday, were intended to be temporary measures under Section 122 of the 1974 Trade Act, which allows the president to impose duties for 150 days without congressional approval. Trump initially said the levy would be 10%, then declared on Saturday that it would rise to 15%. Yet official documents confirm the rate remains at 10%, with no directive to increase it.
“I think it simply adds to the chaos and mess,” said Carsten Brzeski, an analyst with ING, who warned that the fast‑changing tariff landscape was unsettling businesses. “In terms of uncertainty, we’re back to where we were last year,” he told the BBC’s Today programme, adding that the risk of a full‑scale trade war was now greater.
The rollout follows a Supreme Court ruling that blocked Trump’s earlier attempt to impose sweeping global tariffs under the 1977 International Emergency Economic Powers Act (IEEPA). In a 6‑3 decision, the justices found he had overstepped his authority. Trump denounced the ruling as “ridiculous, poorly written, and extraordinarily anti‑American.”
Despite the setback, the administration has already collected at least $130 billion in tariffs under IEEPA, according to official data. The president insists tariffs are necessary to reduce America’s trade deficit, which recently widened by 2.1% compared to 2024, reaching roughly $1.2 trillion (£890bn).
Trading partners have responded cautiously but firmly. The UK said no reciprocal action was “off the table” if Washington failed to honour its tariff deal, though it stressed that “no one wants a trade war.” The European Union suspended ratification of a summer trade agreement, with Brando Benifei, chair of the European Parliament’s US relations delegation, urging collective resistance. “I think you should demand respect,” he said. “My plea is that all the countries in the world that do not like that we are being treated this way… try to work a bit together.”
India also announced it would defer talks to finalise a recent agreement, signalling that uncertainty over US trade policy is already disrupting negotiations.
Analysts warn that the mismatch between Trump’s promises and the actual tariff rate could deepen mistrust abroad and complicate domestic economic planning. Brzeski cautioned that the volatility itself was damaging: “The risk of a real, fully‑fledged tariff war, trade war, escalation is clearly higher than last year.”
As the administration defends its use of emergency trade powers, businesses and governments alike are bracing for what could become another turbulent chapter in global commerce.
Source: BBC
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