Trump’s sudden decision to hike his new tariff rate to 15% is ‘something of an eff you’ to the U.K., which thought it had a better deal for 10%

Fortune

by Jason Ma

February 21, 2026

AI-Generated Deep Dive Summary

President Donald Trump’s abrupt decision to increase tariffs on imports from 10% to 15% has sent shockwaves through international trade relations, particularly affecting the U.K. This move came just days after a Supreme Court ruling invalidated his earlier attempt to impose these tariffs under the International Emergency Economic Powers Act (IEEPA). Instead, Trump turned to Section 122 of the 1974 Trade Act, which requires tariffs to be applied uniformly across all trading partners, overriding the tailored deal the U.K. had secured for a lower rate. The new 15% tariff rate is significant because it undermines the Trump administration’s earlier agreement with the U.K., which was celebrated as a model for other nations seeking favorable terms. The British Prime Minister had taken a conciliatory approach to Trump’s prior tariffs, but this latest move effectively disregards that deal. Meanwhile, other major trading partners like the European Union and Japan already operate under 15% rates, meaning they are unaffected by the change. However, the U.K. now faces an “eff you” moment, as its unique 10% rate is nullified. Economists suggest Trump’s decision may have been driven by financial motives, as higher tariffs could generate more revenue. While the new rate applies universally, some exemptions from the IEEPA tariffs will also apply under Section 122, softening the blow for certain industries. This means the effective tariff increase is less severe than it appears—rising slightly from around 12.5% to 14.5%. The situation is further complicated by Trump’s announcement of new investigations under Sections 301 and 232 of the 1974 Trade Act. These probes could lead to additional tariffs aimed at addressing unfair trade practices or national security concerns, adding layers of uncertainty for businesses. While these new tariffs cannot be implemented immediately, they underscore a continued focus on aggressive trade policies. For businesses and global markets, this shift highlights the ongoing unpredictability in U.S. trade policy. The combination of legal challenges, shifting tariff rates, and pending investigations creates a volatile environment, with potential impacts varying widely depending on

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Originally published on Fortune on 2/21/2026