Trump Announces 10% Global Tariff Following Supreme Court Ruling on Tariffs

HONG KONG – In a swift response to the Supreme Court’s decision invalidating his previous “reciprocal” tariffs, former President Donald Trump has announced a new temporary 10% global import duty. The move, revealed on Friday, February 20, 2026, aims to replace the tariffs struck down by the court and has prompted a reaction from China, which is calling on the U.S. To cancel all unilateral levies.

Supreme Court Ruling and Its Implications

The Supreme Court’s ruling challenged Trump’s authority to impose tariffs without Congressional approval. This decision has significant budgetary implications, as tariffs were projected to generate $2.5 trillion over the next decade according to USA Today. The loss of these revenues creates a “gaping hole” in Trump’s spending priorities and deficit reduction plans.

New 10% Global Tariff

To address the situation, Trump has implemented a temporary 10% global import duty, effective for 150 days, as reported by Reuters. He has also ordered new investigations, suggesting a continued focus on trade policy.

China’s Response

China’s government, emerging from its Lunar New Year holiday, has urged the White House to abolish all unilateral tariffs. This call for cancellation underscores the potential for escalating trade tensions between the two nations.

Potential for New Trade Deals and Investigations

The Supreme Court’s decision opens the door for potential new trade deals and further investigations into trade practices. Treasury Secretary Scott Bessent has indicated that the administration could impose tariffs under other statutes, though Trump has expressed reservations about the ease of implementation compared to the previously invalidated tariffs as noted by USA Today. The administration has already expanded tariffs on steel, aluminum, cars, and parts under the 1962 Trade Expansion Act.

Impact on U.S. Businesses and Consumers

A working paper from Harvard University and the University of Chicago estimates that U.S. Importers are bearing nearly all the cost of Trump’s tariffs, rather than foreign suppliers according to NPR. Some importers have absorbed these costs, leading to lower profits, while others have passed them on to consumers. In January, tariffs represented over 5% of overall government revenue.

Key Takeaways

• The Supreme Court invalidated President Trump’s previous tariffs.
• A new temporary 10% global import duty has been implemented.
• China has called for the cancellation of all U.S. Unilateral tariffs.
• The ruling impacts U.S. Budgetary projections and trade negotiations.
• U.S. Importers are largely bearing the cost of the tariffs.