Impact of Trump’s 15% Global Tariff Hike: What It Means for Businesses and Investors in Oman
Washington – President Donald Trump announced on Saturday a global import duty increase to 15 percent, reinforcing his commitment to a tough tariff policy just one day after the Supreme Court deemed much of his previous tariff actions illegal.
In a statement on his Truth Social platform, Trump criticized Friday’s ruling as “extraordinarily anti-American.” He declared the import levies would be raised “to the fully allowed, and legally tested, 15% level.” This decision followed the Supreme Court’s 6-3 ruling, which curtailed the president’s authority to impose tariffs under a 1977 economic emergency powers act. Trump had initially proposed a new 10 percent global levy using an alternative legal justification.
Simultaneously, the Republican Party launched an unprecedented personal attack on the conservative justices who voted with the majority, accusing them of disloyalty.
This ruling represented a significant setback for Trump, marking what is perceived as his largest defeat at the Supreme Court since he took office 13 months ago. The court’s decision came as a major blow to his flagship economic policy that has disrupted the global trading landscape. Trump’s tariffs have prompted ongoing uncertainty as he continues a trade war against both allies and adversaries. The latest duty is only provisionally enforced for 150 days.
A White House fact sheet indicated that certain sectors, including pharmaceuticals, would still benefit from exemptions under ongoing investigations, as will goods entering the U.S. under the US-Mexico-Canada Agreement. On Friday, the White House confirmed that U.S. trading partners with separate tariff arrangements would also encounter the new global tariff.
Despite the court ruling, which did not affect industry-specific duties on steel, aluminum, and other goods, it remains a critical moment for Trump. The Supreme Court has historically tended to support him on several policy matters.
Trump expressed gratitude towards the conservative justices who supported his tariff authority—Clarence Thomas, Samuel Alito, and Brett Kavanaugh—praising their “strength and wisdom, and love of our country.” He alleged that the majority of justices had been “swayed by foreign interests.”
Following the ruling, Wall Street saw a modest uptick, a development closely monitored by Trump. Business groups welcomed the decision; the National Retail Federation indicated it brings “much-needed certainty” for companies. The Trump administration previously stated that companies would receive refunds if tariffs were found to be unlawful, though this was not addressed directly by the Supreme Court.
Trump anticipates a prolonged legal battle regarding refund policies, with Kavanaugh commenting that the refund process could create significant complications. In response to the Supreme Court’s ruling and Trump’s new tariff policy, various nations are reassessing their positions.
German Chancellor Friedrich Merz announced plans to confer with European allies to establish a unified response before traveling to Washington in early March. Domestically, Pennsylvania Governor Josh Shapiro, a Democrat, called on Trump via X to heed the Supreme Court’s decision, urging him to “end chaotic tariffs and stop wreaking havoc on our farmers, small business owners, and families.”
Special Analysis by Omanet | Navigate Oman’s Market
The recent hike in U.S. import tariffs to 15% underscores a shifting global trade landscape, introducing both opportunities and risks for Omani businesses. Companies in Oman should be strategically positioned to pivot towards markets less influenced by U.S. policy, particularly in sectors exempted from tariffs, while being alert to increased costs for goods reliant on American imports. Smart investors and entrepreneurs should consider diversifying their supply chains and exploring new trade partnerships to mitigate potential disruptions and capitalize on emerging global market dynamics.
