In a move with significant implications for global trade and financial markets, former U.S. President Donald Trump announced the immediate imposition of a 10% tariff on all global imports. This new tariff will be added on top of existing tariffs already in effect. The announcement came on Friday, February 20, 2026, following a Supreme Court ruling that struck down his previous authority to levy tariffs under the International Emergency Economic Powers Act (IEEPA).
Trump stated he would invoke Section 122 of the 1974 Trade Act, which allows the president to impose temporary import restrictions for up to six months, to implement the new 10% global tariff. He argued that the legal frameworks of the Trade Expansion Act of 1962 and the 1974 Trade Act provided him with a stronger scope for action. "Effective immediately. All national security tariffs under Section 232 and Section 301 tariffs remain fully in place. And in full force and effect. Today, I will sign an order to impose a 10% Global tariff under Section 122 over and above our normal tariffs already being charged," Trump declared at a press conference.
The Supreme Court's decision rejected Trump's previous use of the IEEPA to justify tariffs, including a 25% tariff on goods from Canada and Mexico and a 10% tariff on Chinese goods, which he had framed as responses to national security threats. The Court ruled that the Executive Branch does not have the authority to levy tariffs under the IEEPA during peacetime, emphasizing that "Article I, Section 8, of the Constitution specifies that 'The Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises.'"
Trump was highly critical of the Supreme Court's decision, calling it "ridiculous." He claimed the ruling did not weaken his tariff authority but rather "strengthened it" by providing certainty. "Now there is certainty," Trump said, arguing that the U.S. would become stronger and see an increase in tariff revenue as a result. He also suggested that foreign interests had "too much influence" on the Court.
The new 10% global tariff is expected to be in place for approximately five months. Trump signaled a protracted legal battle over the legitimacy of the tariffs and potential refunds of collected revenue. When asked if the U.S. would have to repay tariff revenues, Trump stated that this "needs to be clarified in the judicial process," adding, "We could be in court for the next five years."
Furthermore, Trump threatened additional sector-specific tariffs, mentioning the possibility of new tariffs on the automobile sector ranging from 15% to 30%. He also announced plans to launch new investigations under Section 301 to protect U.S. interests.
Historically, Trump's tariff announcements have repeatedly caused severe downturns in high-risk markets, including cryptocurrencies and equities, as they fuel economic uncertainty and shake investor confidence. This latest announcement introduces fresh volatility risks for global markets.
