President Trump is adding a 10 percent tariff on nearly all imports to the United States, following a Supreme Court ruling that overturned most of the levies imposed by the US government last year.
New Tariffs and Legal Basis
The new tariffs, outlined in an executive order signed Friday evening, will seize effect on February 24, 2026. Exceptions include imports of critical minerals, beef and fruits, cars, pharmaceuticals, and products from Canada or Mexico.
The trade policy is based on Section 122 of the Trade Act of 1974, which allows the president to impose tariffs of up to 15 percent if You’ll see “large and serious” trade deficits. These tariffs are temporary, lasting only 150 days unless Congress authorizes an extension. This statute has not previously been used in this manner by a US president.
Supreme Court Ruling and Reaction
The Supreme Court ruling struck down tariffs imposed under the International Emergency Economic Powers Act (IEEPA), finding that the law does not extend to taxation. President Trump reacted strongly to the decision, calling the six justices who ruled against his trade policies “a disgrace to our nation” and describing two of his own nominees, Neil Gorsuch and Amy Coney Barrett, as “an embarrassment to their families.”
Despite the ruling, Trump indicated he plans to continue using tariff authority, stating he intends to initiate Section 301 and Section 232 investigations to address concerns about unfair trade practices.
Additional Trade Measures
In a separate executive order, the administration confirmed that the suspension of the de minimis exemption—which exempts ecommerce packages under $800 in value from being taxed—will remain in place. The suspension of this exemption last year led to package processing backlogs and price increases on budget shopping platforms.
The Supreme Court decision did not address the issue of refunds for tariffs already paid. Trump stated he expects this matter to be litigated in court, and experts anticipate a lengthy and complex process for companies seeking reimbursement.
Frequently Asked Questions
What is the timeframe for the new tariffs?
The new 10 percent global tariff will take effect on February 24, 2026, and will last for 150 days unless Congress authorizes an extension.
What products are exempt from the new tariffs?
Imports of critical minerals, beef and fruits, cars, pharmaceuticals, and products from Canada or Mexico are exempt from the new tariffs.
What did the Supreme Court rule regarding the previous tariffs?
The Supreme Court ruled that President Trump exceeded his authority when imposing sweeping tariffs using a 1977 law called the International Emergency Economic Powers Act (IEEPA), finding that the law does not extend to taxation.
As the administration navigates these new trade policies, what impact do you anticipate these changes will have on consumers and businesses alike?
