Trump announces 10% global tariff after Supreme Court setback

Saturday 21 February 2026 - 12:30

By: Sahili Aya

Trump announces 10% global tariff after Supreme Court setback

US President Donald Trump has signed an executive order introducing a new 10% global tariff on imports, escalating trade tensions just days after a ruling by the Supreme Court of the United States curtailed his previous tariff framework.

The measure, set to take effect on February 24 for a period of 150 days, applies broadly to trading partners, including those that maintain existing commercial agreements with Washington. According to the White House, certain sectors such as pharmaceuticals will be exempt, as will goods entering under the United States-Mexico-Canada Agreement.

The move follows a Supreme Court decision concluding that the president could not justify sweeping tariffs under emergency economic powers without explicit congressional authorization. Chief Justice John Roberts emphasized in the majority opinion that significant trade actions require a clear legislative mandate.

In response, Trump sharply criticized the ruling, calling it misguided and suggesting it limited executive flexibility in addressing trade imbalances. He defended tariffs as a necessary tool to reduce deficits and strengthen domestic industry.

Financial markets reacted with cautious optimism, as investors interpreted the 10% rate as more predictable than earlier proposals. Major e-commerce firms saw moderate gains, while US trading partners signaled interest in clarifying the scope of the measure before announcing any countersteps.

Democratic leaders welcomed the Court’s decision. Senate Minority Leader Chuck Schumer described it as a win for consumers, while House Democratic leader Hakeem Jeffries urged the administration to avoid further unilateral trade actions. Meanwhile, House Speaker Mike Johnson indicated that Congress would assess possible legislative responses in the coming weeks.

Legal experts note that the ruling could open the door to claims for reimbursement of previously collected duties, which reportedly totaled more than $130 billion last year. The Court’s dissenting opinion warned that the practical implications of refunding such sums could create prolonged legal and administrative challenges.

The renewed tariff initiative underscores ongoing tensions between the executive and judicial branches over trade authority. It also reflects broader debates about the balance between protectionism and free trade in shaping US economic strategy.