President Trump Imposes New 15% Global Tariffs Following Supreme Court Ruling

New Tariffs Take Effect After Supreme Court Rejection

Washington D.C. – President Donald Trump has issued a proclamation imposing a new 15% global tariff on imports, effective February 24, 2026. This action comes just days after the U.S. Supreme Court ruled against the President's authority to levy tariffs under the International Emergency Economic Powers Act (IEEPA), invalidating several of his previous trade measures. The new duties are implemented under Section 122 of the Trade Act of 1974 and are intended to address what the White House describes as 'large and serious United States balance-of-payments deficits.'

Supreme Court Invalidates IEEPA Tariffs

On February 20, 2026, the Supreme Court delivered a 6-3 decision, asserting that the IEEPA does not grant the President the power to impose tariffs. This ruling effectively struck down all tariffs previously imposed under IEEPA, including those related to fentanyl trafficking and reciprocal tariffs on goods from various countries. The Court emphasized that the Constitution assigns the power 'To lay and collect Taxes, Duties, Imposts and Excises' primarily to Congress, not the executive branch.

Section 122 Invoked for New Trade Measures

Within hours of the Supreme Court's decision, President Trump signed a proclamation to establish the new tariffs. Initially set at 10%, the tariff rate was subsequently raised to 15%, the maximum allowed under Section 122 of the Trade Act of 1974. This section authorizes the President to impose temporary import surcharges to rectify 'fundamental international payments problems.' The administration has cited a $1.2 trillion annual U.S. goods trade deficit and a negative balance on primary income as justifications for the move.

The tariffs are slated to remain in effect for 150 days, until July 24, 2026, unless extended by an act of Congress. Certain product categories are exempt from these new duties, largely mirroring previous exemptions and those under the United States-Mexico-Canada Agreement (USMCA), including critical minerals, energy products, and some agricultural goods.

Economic Implications and Anticipated Challenges

The imposition of these new tariffs is expected to have significant economic implications and has already drawn scrutiny. Trade experts suggest that the use of Section 122 in this manner is unprecedented, making it ripe for potential legal challenges. Economists have also debated the administration's claim of a 'balance-of-payments crisis,' with some arguing that the U.S. does not face the typical conditions associated with such a crisis.

The new tariff regime replaces a complex system of country-specific rates under IEEPA with a single, flat rate across nearly all imports. This shift is anticipated to impact global supply chains and cross-border commerce, prompting businesses to assess potential effects on pricing, compliance, and market access.