On
February 20, 2026, President Donald Trump announced he would sign an executive order to impose a new 10% global tariff. This move followed a major Supreme Court ruling earlier that day that struck down his previous sweeping "reciprocal" tariffs as illegal.Key Details of the New 10% Global Tariff
- Legal Basis: Trump is invoking Section 122 of the Trade Act of 1974, which allows the president to impose tariffs of up to 15% to address "large and serious" balance-of-payments deficits.
- Duration: Tariffs under Section 122 are temporary and can remain in effect for only 150 days without congressional approval.
- Scope: The 10% levy is described as an "across-the-board" global tariff that will be applied on top of existing duties that were not affected by the court's ruling.
The Supreme Court Ruling
In a 6-3 decision authored by Chief Justice John Roberts, the Court ruled that the International Emergency Economic Powers Act (IEEPA) does not authorize the president to unilaterally impose tariffs.
- The Majority: Roberts was joined by Justices Gorsuch, Barrett, Sotomayor, Kagan, and Jackson. They concluded that the power to tax and set tariffs belongs to Congress under the Constitution.
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