#TrumpAnnouncesNewTariffs

President Donald Trump has announced a new 15% global tariff following a significant Supreme Court ruling that struck down his previous tariff program . The administration has swiftly pivoted to a different legal strategy to maintain its aggressive trade agenda.

Here is a summary of the key developments:

Aspect Details
New Tariff Rate 15% global tariff
Legal Basis Section 122 of the Trade Act of 1974
Duration Temporary; up to 150 days unless Congress extends it
Effective Date To take effect shortly after the Feb. 20, 2026 ruling
Key Exemptions CUSMA-compliant goods (Canada/Mexico); sectoral tariffs (steel/aluminum) remain
Rationale Response to Supreme Court striking down previous IEEPA-based tariffs

🏛️ The Supreme Court Ruling and Its Aftermath

The new tariffs are a direct response to a February 20, 2026, Supreme Court decision .

· What the Court Struck Down: The court ruled 6-3 that President Trump had exceeded his authority by imposing sweeping tariffs under the International Emergency Economic Powers Act (IEEPA) of 1977 . Chief Justice John Roberts, writing for the majority, emphasized that the Constitution vests the power to levy taxes—including tariffs—solely with Congress .
· The Immediate Reaction: Shortly after the ruling, President Trump announced a 10% global tariff as a placeholder, which was then increased to 15% the following day after what he described as a "thorough, detailed, and complete review" of the decision .

⚖️ The New Legal Basis: Section 122

To implement the new 15% tariff, the administration is now using Section 122 of the Trade Act of 1974 .

· How it Works: This law allows a president to impose temporary duties of up to 15% to address "large and serious United States balance-of-payments deficits" . However, these tariffs are only allowable for 150 days unless Congress votes to extend them .
· What's Exempt and What Continues: A White House fact sheet confirms that goods compliant with the Canada-United States-Mexico Agreement (CUSMA) are exempt from this new duty . It is also important to note that the Supreme Court ruling did not impact other sectoral tariffs, such as those on steel, aluminum, copper, and some automotive parts, which remain in place under Section 232 of the Trade Expansion Act .

🌍 Reactions and Next Steps

The administration's move has triggered a range of responses both domestically and internationally.

· International Pushback:
· The European Union has stated it will not accept the tariff increase, with a European Commission official saying, "A deal is a deal" .
· Brazil's President Luiz Inácio Lula da Silva urged the U.S. to treat all countries equally .
· Germany's Chancellor Friedrich Merz plans to consult with European allies to formulate a joint response before visiting Washington .
· India has decided to delay a planned trade visit to the U.S. to evaluate the implications of the ruling .
· Domestic and Legal Outlook:
· U.S. Trade Representative Jamieson Greer has defended the new approach as "very durable" legally, calling it a way to "reconstruct" the president's trade agenda .
· Treasury Secretary Scott Bessent described the 15% tariff as a "bridge" to more enduring tariffs expected later in the year .
· The ruling has also opened the door for U.S. importers who paid the now-invalidated IEEPA tariffs to seek refunds, a process that could involve over $100 billion and may be determined by lower courts .

In short, while the Supreme Court delivered a significant blow to the administration's original tariff policy, President Trump has quickly pivoted to an alternative legal tool to maintain broad pressure on U.S. trading partners, setting the stage for continued trade tensions.