Trump Announces 10% Global Tariff After Supreme Court Ruling in February 2026

A new 10% global tariff was announced by Donald Trump in February 2026. This is a change from his previous tariffs that were stopped by the Supreme Court.
By Newsroom | Politics, Trade |

A new 10% global tariff has been announced by Donald Trump, following a Supreme Court decision that struck down his previous tariff policies. The announcement came with strong criticism of the court's ruling, which Trump described as "deeply disappointing." This move signifies a shift in how Trump plans to implement trade measures, exploring different legal avenues to impose import taxes.

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Background and Supreme Court Decision

The core of the issue revolves around Trump's use of executive power to impose tariffs. His administration had used statutes such as Section 232 and Section 301 to enact tariffs, aiming to protect American industries and rebuild the manufacturing base.

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  • Previous Tariffs: Tariffs imposed under specific statutes, like Section 301, were subject to a 150-day limit, requiring congressional approval for extensions.

  • Supreme Court Ruling: The Supreme Court, in a 6-3 decision, invalidated the legal basis for many of these tariffs. This ruling affirmed that unilateral presidential power to impose import taxes has limitations, particularly concerning their duration and the need for legislative consent for extensions.

  • Impact of Ruling: The decision was seen as a significant setback to Trump's economic agenda, limiting his ability to unilaterally implement broad tariff policies.

Trump's Response and New Tariff Announcement

In response to the court's decision, Trump expressed strong dissatisfaction and announced plans for new tariff measures.

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  • Criticism of the Court: Trump openly criticized the justices, including some he nominated, for their role in the ruling. He specifically praised Justices Alito, Thomas, and Kavanaugh, who dissented in the case.

  • New Tariff Order: Trump stated his intention to sign an executive order imposing a 10% global tariff under Section 122 of the Trade Act of 1974. This action is framed as being "over and above our normal tariffs already being charged."

  • Legal Basis: Section 122 authorizes the President to impose temporary import surcharges for up to 150 days in specific international economic situations, such as balance-of-payments problems.

  • Further Investigations: Beyond the new global tariff, Trump indicated that investigations under Section 301 and other statutes would be initiated to address unfair trade practices by other countries and companies.

Economic Ramifications

The announcement of new tariffs has generated a mixed reaction and raises questions about economic stability.

Read More: Supreme Court Stops Trump Tariffs, Causing Fights in Republican Party on Friday

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  • Market Reaction: Initial market responses indicated volatility, with futures for major stock indexes like the S&P 500 and Nasdaq 100 showing declines following the announcement.

  • Previous Revenue: It is noted that Trump's earlier tariffs had significantly increased U.S. customs duties, with collections surging from under $10 billion to over $34 billion in a specific period. Firms that paid these duties may seek refunds.

  • Potential for New Tariffs: Trump stated that firms could face higher rates, with examples like Japan at 24%, South Korea at 25%, and China at 34% being mentioned. However, some nations, such as Canada, appeared to be exempt from the new levies.

Conflicting Views and Perspectives

The implications of Trump's actions and the Supreme Court's decision have elicited varied responses.

Unilateral Presidential Power

  • Trump's Stance: Trump has asserted broad executive authority, stating, "We have the right to do pretty much what we want to do." He views these tariffs as essential for the U.S. economy and for bolstering domestic manufacturing.

  • Judicial Interpretation: The Supreme Court's ruling suggests a more constrained view of unilateral presidential power in imposing tariffs, emphasizing the need for checks and balances, particularly for prolonged measures.

  • Congressional Role: The ruling implies a greater role for Congress in approving or extending tariffs beyond the initial statutory limits.

Economic Policy Objectives

  • Arguments for Tariffs: Proponents, including Trump, argue that tariffs are necessary to protect American jobs, counter unfair trade practices, and rebuild domestic industries. The increase in customs duties from previous tariffs is cited as evidence of their revenue-generating potential.

  • Arguments Against Tariffs: Critics and market observers often point to potential negative consequences, such as increased costs for consumers, disruptions to supply chains, retaliatory tariffs from other nations, and overall economic uncertainty. The stock market's initial negative reaction suggests investor concerns.

Expert Analysis and Future Considerations

The situation presents a complex interplay between executive action, judicial review, and economic policy.

  • William Bain, head of trade policy at the BCC, suggested that Trump could utilize "other legislation to re-impose tariffs," aligning with the recent announcement of using Section 122.

  • The validity and duration of the new Section 122 tariffs will likely be subject to scrutiny, especially if they exceed the 150-day limit without further legislative action.

  • The extent to which Trump will pursue additional investigations under Section 301 and other statutes remains a point of interest, potentially leading to further trade disputes.

Conclusion

The announcement of a new 10% global tariff by Donald Trump, following the Supreme Court's decision against his previous tariff policies, marks a significant development in U.S. trade strategy. Trump is utilizing Section 122 of the Trade Act of 1974 to implement these new measures, which he describes as temporary surcharges. This move, coupled with stated intentions to pursue further trade investigations, underscores a persistent effort to employ tariffs as a tool of economic policy, despite judicial setbacks. The long-term economic impact, including potential international reactions and domestic market adjustments, remains to be fully observed.

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Frequently Asked Questions

Q: Why did Donald Trump announce a new 10% global tariff in February 2026?
Donald Trump announced a new 10% global tariff because the Supreme Court stopped his old tariffs. He wants to use trade taxes to help American industries.
Q: What did the Supreme Court decide about Trump's old tariffs?
The Supreme Court decided in February 2026 that many of Trump's old tariffs could not be used for a long time without Congress agreeing. This was a 6-3 decision.
Q: How will the new 10% global tariff work?
The new tariff will be a 10% tax on goods coming into the US. Trump plans to use a different law, Section 122 of the Trade Act of 1974, which allows temporary taxes for up to 150 days.
Q: Who might be affected by these new tariffs?
Businesses that import goods will be affected because they will have to pay more. Some countries might face higher rates, like Japan at 24% or China at 34%, but some, like Canada, might be free from these new taxes.
Q: What was Trump's reaction to the Supreme Court ruling?
Trump was very unhappy with the Supreme Court's decision. He said it was "deeply disappointing" and criticized some of the judges.
Q: What could happen next with trade and tariffs?
Trump said he will also look into unfair trade practices by other countries. The new tariffs might be checked by courts again if they go beyond 150 days without Congress's approval.