Trump Imposes Novel 10% Global Tariff Following Supreme Court Ruling

U.S. President Donald Trump has announced a new 10% global tariff on imports into the United States, just days after the Supreme Court struck down his previous attempt to impose sweeping tariffs without congressional approval. The move signals a continued commitment to protectionist trade policies despite the legal setback.

Supreme Court Ruling Limits Presidential Authority

On Friday, February 20, 2026, the Supreme Court ruled that Trump exceeded his authority when utilizing the International Emergency Economic Powers Act (IEEPA) to impose broad tariffs on numerous trading partners, including the European Union [1]. The court found that IEEPA does not grant the president the power to impose tariffs for economic reasons.

New Tariffs Based on 1974 Trade Act

In response, Trump stated he signed an executive order invoking Section 122 of the Trade Act of 1974 to implement the new 10% tariff [4]. This law allows the president to impose tariffs for up to 150 days. However, longer-term implementation would require approval from the U.S. Congress.

Concerns Over Legal Basis and Potential Chaos

Experts have raised doubts about whether the requirements for utilizing Section 122 for temporary tariffs have been met [1]. The Supreme Court’s decision is expected to trigger a wave of claims for refunds of tariffs already paid, potentially totaling around $175 billion, according to projections by the Penn Wharton Budget Model at the University of Pennsylvania [1]. The commercial court in New York would likely handle these claims.

International Reactions

Canada and the European Union have reacted to the Supreme Court ruling with cautious optimism. Dominic LeBlanc, Canada’s top official for U.S.-Canada trade, stated the ruling reinforces Canada’s position that the IEEPA tariffs imposed by the United States are unjustified [1]. The European Union is closely monitoring the Trump administration’s next steps [1], and the ruling has cast doubt on the future of the EU-US trade deal [3]. MEPs were set to vote to reduce levies on US exports under the terms of the EU-US trade deal before the ruling.

Uncertainty Remains

Despite the Supreme Court’s decision, uncertainty persists as President Trump has demonstrated a willingness to pursue alternative avenues for imposing tariffs. The situation remains fluid and will likely continue to evolve in the coming weeks and months [2].