Donald Trump has introduced tariffs on goods coming into the US from most countries around the world.

The US president argues that the taxes will boost domestic manufacturing and create jobs. But critics have warned of higher prices for consumers and damage to the global economy.

On Friday, the US Supreme Court struck down some of the most significant tariffs.

It ruled that Trump had exceeded his authority in using emergency powers to enact them on dozens of global trading partners.

But Trump replaced those measures with a 10% global tariff using a different law.

What are tariffs and how do they work?

Tariffs are taxes on imported goods.

Typically, the charge is a percentage of a good's value.

For example, a 10% tariff on a $10 product would mean a $1 tax on top, taking the total cost to $11 (£8.17).

The tax is paid to the government by companies bringing in foreign products.

These firms may pass some or all of the extra cost on to their customers, which in this case means ordinary Americans and other US businesses.

They may also decide to import fewer goods.

Why is Trump using tariffs?

Trump says tariffs increase the amount of tax raised by the government, encourage consumers to buy American-made goods, and boost investment in the US.

He wants to reduce the US trade deficit - the gap between the value of goods it buys from other countries and those it sells to them.

The president argues that the US has been exploited by "cheaters" and "pillaged" by foreigners.

Trump has also used the taxes to make other demands.

For example, when announcing tariffs against China, Mexico, and Canada, he said the countries must do more to stop migrants and the illegal drug fentanyl from reaching the US.

Trump also threatened additional 10% tariffs on eight European countries that opposed his plans to take over Greenland, before saying he would not do so.

Some tariffs have been amended, delayed, or scrapped after being announced.

What are Trump's tariffs on individual countries?

After the Supreme Court ruled against him on Friday, Trump signed a proclamation to impose a 10% global tariff to come into effect on 24 February.

The proclamation cites a never-used law known as Section 122, which gives the president power to put in place tariffs of up to 15% for 150 days, at which point Congress must step in.

There are a variety of exemptions, including certain minerals, natural resources, and fertilisers; some agricultural products like oranges and beef; pharmaceuticals; some electronics, and certain vehicles.

For many of the categories of exempt goods, the order is broad and does not specifically say what items might be exempt.

The proclamation does not list out any specific countries.

The White House also clarified that Canada and Mexico will retain an exemption on goods compliant with the United States-Mexico-Canada (USMCA) free trade deal.

The Supreme Court decision and Trump's new levies raise questions about the fate of trade deals that many countries struck with the Trump administration to lower tariffs last year.

A White House official said those countries, which include the UK, India, and the EU, will now face the global 10% tariff - rather than the tariff rate they had previously negotiated.

The Trump administration expects those countries to keep abiding by the concessions they had agreed to under the trade deals, the official added.

In April 2025, Trump said a "baseline" of 10% would apply to imports from almost all other countries, while nations considered the "worst offenders" in trade terms would face higher rates from August.

After a series of negotiations, these include:

1. 18% tariffs on Indian goods

2. 50% tariffs on Brazilian goods

3. 30% tariffs on South African goods

4. 20% tariffs on Vietnamese goods

5. 15% tariffs on Japanese goods

6. 15% tariffs on most EU goods

On 13 January, Trump said the US would apply a 25% tariff to Iran's trading partners, after Tehran cracked down on anti-government protests.

On 26 January, Trump said he would increase the current 15% tariff rate on South Korean goods to 25% after accusing Seoul of "not living up" to the deal agreed in 2025.

What was in the UK tariff deal?

The UK had already negotiated 10% tariffs with the US on most goods in June 2025.

In 2024, it exported about £58bn of goods to the US - mainly cars, machinery, and pharmaceuticals.

Under the terms of the 2025 deal, the 10% rate applied to the first 100,000 UK vehicles exported every year - roughly the number sold in 2024. Additional cars face the standard 25% tariff.

The agreement also lets the two countries sell beef to each other.

Trump announced "the deal was done" in June 2025, but did not confirm the expected removal of a 25% rate that applies to UK steel exports.

This is no longer expected to happen.

Which goods were affected by Trump's tariffs?

Some taxes announced by Trump are on particular products, wherever they are made.

These include:

1. 50% tariff on steel and aluminium imports (except for those from the UK)

2. 50% tariff on copper imports

3. 50% tariff on kitchen and bathroom cabinets and some furniture

4. 25% tariff on most foreign-made cars, engines, and other car parts

5. 25% tariff on all heavy-duty trucks

In addition, Trump ended an exemption for imports valued at $800 (£592) or less.

It means low-cost goods are no longer duty-free - a move affecting millions of packages sent every day, including those from online retailers like Shein and Temu.

The companies shipping the parcels now have to pay duties based on the tariff rate that applies to the country the goods were sent from. Otherwise, for six months, they can choose to pay a fixed fee of between $80 and $200 per package.

On 2 January, the White House confirmed it had slashed proposed tariffs of almost 92% on some imported pasta after what it called constructive engagement from firms.

In November, Trump signed an executive order exempting a range of other food products from tariffs, including avocados, bananas, beef, and coffee, because of domestic shortages.

Why was the Supreme Court considering the legality of Trump's tariffs?

The Trump administration brought in some of the tariffs using the 1977 International Emergency Economic Powers Act.

Declaring an emergency under the law meant Trump could bypass Congress and other tariff procedures.

In August 2025, a US appeals court ruled that most of the tariffs introduced this way were illegal, but left them in place.

The White House asked the US Supreme Court to overturn that decision, but it instead upheld the lower court.

Trump had warned that it would be a "complete mess" if the Supreme Court struck down his tariffs, and warned of difficulties if businesses were told they could claim refunds.

"It would take many years to figure out what number we are talking about and even who, when, and where to pay," he said.

Have prices gone up for US consumers?

Throughout the tariffs saga, some products have become more expensive - including toys, appliances, and furniture, as well as certain foodstuffs.

US inflation was 2.7% in the 12 months to December, down from 3% in September, but up from 2.4% in April, before most tariffs started.

Many firms say they are passing on the cost of tariffs to US customers, including Target, Walmart, and Adidas.

The cost of goods manufactured in the US using imported components is also expected to rise.

For example, car parts typically cross the US, Mexican, and Canadian borders multiple times before a vehicle is completely assembled.

How are tariffs affecting the US and global economies?
Trump was accused of throwing the global economy into turmoil when he announced the first tariffs of his second presidential term.

Although financial markets have since largely recovered, in October 2025, the International Monetary Fund (IMF) said the overall picture remained volatile and that US tariffs were having a negative effect.

It thinks the US economy will grow by 2.1% in 2026. That's down from the 2.8% growth recorded in 2024, but still the fastest among the world's most advanced economies.

After the Supreme Court ruled against Trump's tariffs, shares on Wall Street rose, with the S&P 500 closing up about 0.7%, as businesses across the US cautiously welcomed the news.

But also potentially impacting the US economy is the possibility of whether businesses and consumers will be eligible for refunds from the levies now that they've been ruled unlawful. Estimates say the tariffs generated about $175 billion.

Trump has said that if the US is forced to pay back the taxes, it would be a "complete mess" and "almost impossible for our Country to pay".

The Supreme Court did not rule on whether the Trump administration would be obligated to return the funds, instead punting that to lower courts, but did acknowledge that this could be a consequence of its ruling.

"They take months and months to write an opinion, and they don't even discuss that point," Trump said after the ruling. "What happens to all the money we took in? It wasn't discussed."