Kuala Lumpur — U.S. President Donald Trump has responded to a major legal setback by issuing a new order to impose a temporary 10% global import tariff on all trading partners. This comes after the U.S. Supreme Court struck down his previous broad tariffs, ruling that he exceeded his authority under the International Emergency Economic Powers Act (IEEPA).
📉 Supreme Court Ruling
- On February 20, 2026, the U.S. Supreme Court ruled 6–3 that Trump’s sweeping global tariffs — imposed using emergency powers — were unconstitutional, because the president needs explicit congressional authority to enact such wide trade levies.
- The decision could affect billions in tariff revenue and possibly refund some already collected duties.
🛃 Trump’s New 10% Global Tariff
- In response, Trump signed an executive order for a 10% global tariff, effective for 150 days, to replace the struck-down duties. The levy is based on Section 122 of the Trade Act of 1974, a different legal tool that allows temporary tariffs to address trade imbalances.
- Trump says the new tariff will be applied on top of existing duties and will be in effect while further trade investigations under Section 301 are launched.
🤝 Administration View and Reaction
- U.S. Treasury officials say the alternative tariff tools could help maintain tariff revenue despite the Supreme Court setback.
- Trump framed the shift as a continuation of his trade policy, telling reporters his team has “great alternatives” and that the temporary tariff will strengthen the country’s economic position.
⚖️ Broader Impact
- The Supreme Court ruling underscores limits on executive power in trade policy and reinforces the role of Congress in approving tariff measures.
This development has significant implications for global trade, as the U.S. shifts tactics to keep tariff pressures in place while legal challenges and investigations continue.
