Trump Imposes New 10% Global Tariff After Supreme Court Ruling
U.S. President Donald Trump has imposed a new 10% global tariff on Friday, following a Supreme Court decision that invalidated previous tariffs imposed under emergency powers. The new tariffs will seize effect on Tuesday, February 24, 2026, and will be in place for 150 days. However, Canadian exports to the U.S. That comply with the Canada-United States-Mexico Agreement (CUSMA) will be exempt.
Supreme Court Decision
The Supreme Court ruled 6-3 against Trump’s previous use of tariffs, finding that he overstepped his authority by imposing them under the International Emergency Economic Powers Act (IEEPA). The court determined that the law does not authorize the president to impose tariffs. CBC News reports that the ruling centered on tariffs imposed in response to fentanyl trafficking and trade deficits.
New Tariff Details
In response to the ruling, Trump announced the new 10% global tariff based on Section 122 of the Trade Act of 1974. This section allows the president to impose tariffs of up to 15% if “large and serious” trade deficits exist. Global News notes that this authority is temporary, lasting only 150 days unless Congress authorizes an extension.
Exemptions and Ongoing Tariffs
While the new tariff is broad, certain goods are exempt, including critical minerals, beef, fruits, cars, and pharmaceuticals. Crucially, goods from Canada and Mexico that meet CUSMA requirements are also excluded. CTV News highlights that existing tariffs on steel, aluminum, and autos, imposed under different legislation, remain in place.
Potential for Future Tariffs and Refund Process
Trump indicated his administration may pursue additional tariffs through Section 301 and Section 232 investigations, which address national security and unfair trade practices. The process for refunding tariffs paid under the invalidated IEEPA authority remains unclear. Trump suggested it would likely be litigated in court. Experts anticipate a complex and potentially lengthy refund process, potentially taking months or even years, as companies file claims and negotiate amounts with the government.
De Minimis Exemption
The administration has also confirmed that the suspension of the de minimis exemption – which previously allowed for the duty-free import of goods under $800 – will remain in effect. This suspension has already caused processing backlogs and price increases for online shoppers.
Reaction to the Ruling
During a press conference, Trump expressed strong disapproval of the Supreme Court’s decision, personally criticizing the justices who ruled against him. He also made claims about his reading comprehension and unrelated issues, such as his views on Europe and the Federal Reserve.