Trump Announces 10% Global Tariff Following Supreme Court Defeat on Trade

President Donald Trump announced a new 10% “global tariff” on Friday, February 20, 2026, hours after the Supreme Court struck down his sweeping tariffs in a 6-3 decision. The ruling significantly curtailed the President’s authority to impose tariffs without explicit congressional authorization. Trump, visibly frustrated, responded with a new executive order utilizing Section 122 of the Trade Act of 1974, aiming to circumvent the court’s limitations.

Supreme Court Limits Presidential Tariff Power

The Supreme Court’s decision centered on the President’s employ of the International Emergency Economic Powers Act (IEEPA) to justify broad tariffs. Chief Justice John Roberts, writing for the majority, stated that the President requires “clear congressional authorization” to impose tariffs of “unlimited amount, duration, and scope.” USA Today reports that the court found Trump had overstepped his constitutional authority, specifically Article 1, Section 8, which grants tariff power to Congress.

Trump’s Reaction and New Tariff Announcement

Following the ruling, President Trump delivered a scathing critique of the court, singling out Justices Amy Coney Barrett and Neil Gorsuch, whom he appointed, as “a disgrace to our nation.” TIME detailed Trump’s accusations that the justices were motivated by fear of criticism and influenced by “foreign interests.”

In response, Trump announced the new 10% tariff under Section 122 of the Trade Act of 1974 via a post on Truth Social. CNBC reports that this tariff will take effect “almost immediately” and is intended to replace the IEEPA-based duties invalidated by the court. The new tariffs have a 150-day time limit.

Impact and Future Outlook

The Supreme Court’s decision represents a major setback for Trump’s economic agenda, which heavily relied on tariffs as a tool for trade negotiations and domestic economic growth. While the President maintains that tariffs are essential for rebuilding America’s manufacturing base, the ruling forces a shift in strategy. The new 10% global tariff is presented as a workaround, but its long-term effectiveness and potential impact on consumers and businesses remain to be seen.

Trump asserted that he has “great” alternative methods to achieve his economic goals, suggesting further adjustments to trade policy are likely. The legal challenges to these new measures are anticipated, potentially leading to further court battles.