Global Tariff, President Donald Trump moved swiftly to stabilize his trade agenda on Friday, signing a directive imposing a 10% tariff on nearly all foreign imports just hours after the Supreme Court of the United States struck down key elements of his previous tariff program.
The new tariff will take effect on February 24 at 12:01 a.m. Washington time, according to a White House fact sheet. Trump framed the action as decisive and necessary to protect American industry.
“It is my Great Honor to have just signed, from the Oval Office, a Global 10% Tariff on all Countries,” Trump wrote on social media. “Thank you for your attention to this matter!”
A Legal Shift: Section 122 Authority
Unlike the tariffs invalidated by the Supreme Court, which were imposed under the International Emergency Economic Powers Act, the new measure relies on Section 122 of the Trade Act of 1974.
Section 122 grants the president temporary authority to impose tariffs without congressional approval. However, the law caps such tariffs at 150 days unless Congress votes to extend them — a significant limitation that could complicate Trump’s longer-term plans.
The Supreme Court’s 6–3 ruling earlier Friday found that Trump had exceeded his authority by invoking emergency economic powers to justify broad “reciprocal” tariffs ranging from 10% to 50% on dozens of US trading partners. The decision also invalidated tariffs imposed on Canada, Mexico, and China under fentanyl-related justifications.
What Stays and What Changes
Despite the court’s setback, Trump’s administration is preserving other trade measures already in place. Tariffs implemented under Section 301 and Section 232 authorities remain active.
Trump directed the Office of the US Trade Representative to launch accelerated investigations under Section 301. These country-specific probes can result in additional tariffs if a trading partner is found to have violated agreements or engaged in unfair trade practices.
According to US Trade Representative Jamieson Greer, the investigations may address:
- Industrial overcapacity
- Forced labor
- Pharmaceutical pricing
- Digital services taxes
- Discrimination against US technology firms
- Environmental practices affecting seafood and agriculture
These investigations require hearings and consultation, making them more legally durable than emergency-based tariffs.
Economic Impact
Bloomberg Economics estimates the 10% global tariff could push the average US effective tariff rate to 16.5% from 13.6%, depending on exemptions.
Notably, goods compliant with the USMCA trade agreement between the US, Canada, and Mexico remain exempt, along with certain agricultural products.
The ruling also raises major questions about previously collected tariff revenue. More than 1,500 companies had filed lawsuits challenging earlier tariffs. Refunds could total as much as $170 billion, though the Supreme Court left the issue to lower courts.
Treasury Secretary Scott Bessent downplayed the financial disruption, saying tariff revenue in 2026 would be “virtually unchanged” due to the new legal strategy combining Section 122, 232, and 301 authorities.
Political Headwinds
Trump may face resistance in Congress if he seeks to extend the 10% tariff beyond the 150-day window. Some Republicans have already expressed concern, warning that expanded tariffs could increase bipartisan opposition.
Still, Trump signaled that additional measures, including potential tariffs on foreign automobiles of 15% to 30%, remain under consideration.
The move demonstrates Trump’s determination to maintain leverage in global trade negotiations, even as the judiciary narrows his unilateral powers.
Read More: Trump lashes out at Supreme Court justices over tariffs ruling
FAQs
Why did Trump sign a new 10% global tariff?
He acted quickly after the Supreme Court invalidated earlier tariffs imposed under emergency powers. The new tariff uses a different legal authority to preserve his broader trade agenda.
What is Section 122 of the Trade Act of 1974?
It is a provision that allows the president to impose temporary tariffs without congressional approval, but only for up to 150 days unless Congress extends them.
How is this different from the previous tariffs?
Earlier tariffs relied on the International Emergency Economic Powers Act. The Supreme Court ruled that law did not authorize sweeping trade duties. Section 122 provides more explicit — though temporary — tariff authority.
Will consumers feel the impact?
Potentially. Broad tariffs can raise import costs, which may translate into higher prices for goods ranging from electronics to vehicles, depending on exemptions and supply chain adjustments.
Could companies receive refunds from earlier tariffs?
Possibly. The Supreme Court did not decide on refunds, leaving lower courts to determine whether companies are entitled to recover previously paid duties. Refunds could total up to $170 billion.
Conclusion
President Trump’s 10% global tariff represents a rapid recalibration of his trade strategy after a major judicial setback. By shifting legal footing from emergency powers to Section 122 authority, he has temporarily preserved his ability to shape trade policy, though with stricter time limits and greater congressional oversight. The coming months will determine whether Congress extends the tariff, whether courts mandate refunds, and whether further investigations under Sections 301 and 232 lead to additional trade measures. What is clear is that the battle over tariffs and executive power is far from over.
