Supreme Court Strikes Down Trump Tariffs, New 10% Global Tariff Announced
WASHINGTON – In a significant shift following the U.S. Supreme Court’s rejection of his emergency tariffs, President Donald Trump announced a new 10% global tariff on February 20, 2026. The administration simultaneously confirmed exemptions for products adhering to the rules of origin outlined in the USMCA (United States-Mexico-Canada Agreement) to mitigate disruptions to international markets and North American supply chains.
New Tariffs Accept Effect February 24, 2026
The new tariff, set to take effect on February 24, 2026, aims to replace the previously declared unconstitutional tariffs. Despite a protectionist stance, the Trump administration has opted to exclude key sectors including automotive, electronics, and critical minerals, seeking to avoid a collapse of regional economic integration ahead of the scheduled USMCA review this year.
Impact on Mexico
The decision provides a measure of relief for Mexico’s export sector. Mexican Secretary of Economy, Marcelo Ebrard, urged caution, noting that over 80% of Mexican exports to the U.S. Are already protected under USMCA, shielding them from the direct impact of the new tariffs USA TODAY. However, concerns remain due to ongoing threats from Washington.
Exemptions to the New Tariff
The presidential proclamation extends benefits beyond USMCA partners. Essential products not manufactured in the U.S., such as certain fertilizers, pharmaceuticals, and basic medical ingredients, are also exempt. In the agricultural sector, tomatoes, beef, and oranges will be excluded to prevent inflationary pressures on the basic basket of American families.
Legal Basis and Duration
This new tariff scheme is based on Section 122 of the Trade Act of 1974, which allows the Executive Branch to impose temporary rates to correct imbalances in the balance of payments. Unlike the previous measures, this tariff has a limited validity of 150 days, providing a negotiation window for technical teams from Mexico, the U.S., and Canada during the spring of this year.
Remaining Trade Concerns
Analysts caution that risks persist regarding sectoral tariffs on steel and aluminum under Section 232, which were not affected by the Supreme Court ruling CNBC. President Claudia Sheinbaum’s government has adopted a diplomatic approach, focusing on strengthening the bilateral relationship to prevent political tensions from disrupting cross-border trade.
Supreme Court Ruling Details
On February 20, 2026, the U.S. Supreme Court struck down President Donald Trump’s sweeping global tariffs, ruling 6-3 that the law underpinning those import duties “does not authorize the President to impose tariffs” AP News. Chief Justice John Roberts delivered the opinion, with Justices Clarence Thomas, Samuel Alito, and Brett Kavanaugh dissenting. The ruling represents a significant loss for Trump, who had positioned tariffs as a central element of his economic policy and asserted his power to impose them without congressional input Reuters.