President Donald Trump has escalated his trade agenda once again, announcing a significant increase in new global tariffs following a major setback from the U.S. Supreme Court. In a dramatic sequence of events over the weekend of February 20–21, 2026, the president responded to the court's ruling by imposing—and then quickly raising—a temporary across-the-board import duty aimed at addressing what the administration calls "fundamental international payment problems" and rebalancing U.S. trade relationships.

### Background: The Supreme Court Ruling
On February 20, 2026, the Supreme Court issued a 6-3 decision in a key case, ruling that the International Emergency Economic Powers Act (IEEPA) does not grant the president authority to impose broad tariffs unilaterally as emergency measures. This invalidated many of the sweeping duties Trump had levied over the past year using emergency powers, marking a significant legal check on his trade policy. The ruling does not affect existing tariffs under other authorities (such as Section 232 national security or Section 301 unfair practices), nor does it address potential refunds for importers.

Trump, undeterred, immediately pivoted to alternative legal tools. That same day, he signed a proclamation invoking Section 122 of the Trade Act of 1974—a rarely used provision allowing temporary duties for up to 150 days to address balance-of-payments issues. The initial announcement imposed a **10% ad valorem** duty on most imported goods, effective February 24, 2026, at 12:01 a.m. ET.

### Escalation to 15%
Just one day later, on February 21, Trump announced via Truth Social that he was raising the rate to **15%**, describing it as the "fully allowed, and legally tested" maximum under the statute. He framed the increase as a direct response to countries that have long "ripped off" the United States without consequences, vowing that this move would protect American workers, farmers, and manufacturers while continuing the "Make America Great Again" agenda.

The White House fact sheet outlines key exemptions to minimize disruption to critical U.S. supply chains and economic needs, including:
- Certain critical minerals, energy products, and natural resources not sufficiently produced domestically
- Specific agricultural items (e.g., beef, tomatoes, oranges)
- Pharmaceuticals and ingredients
- Certain electronics, passenger vehicles, light trucks, buses, aerospace products, and informational materials (e.g., books)

USMCA-compliant goods from Canada and Mexico remain largely exempt under existing trade agreements, though broader uncertainty persists for allies and rivals alike.

### Market and Global Reactions
The rapid announcements have injected fresh volatility into global markets. Stocks wavered on Wall Street, with importers, retailers, and manufacturers bracing for higher costs. Analysts note that while the tariffs are temporary (expiring after 150 days unless extended by Congress), they could fuel inflation, disrupt supply chains, and prompt retaliatory measures from trading partners.

Some early assessments suggest mixed impacts: U.S. allies like the U.K., EU, and Singapore may face higher effective duties, while countries with previously high targeted tariffs (e.g., China, Brazil, India) could see relative relief under the flat global rate. Trump has signaled more actions ahead, including new Section 301 investigations and potentially "more powerful and obnoxious" uses of other tariff authorities in the coming months.

### Looking Ahead
With Trump's State of the Union address coinciding with the tariffs' start date, the policy is poised to dominate economic discussions. Critics warn of rising consumer prices and trade tensions, while supporters argue it strengthens U.S. leverage in negotiations. As the 150-day clock ticks, the coming weeks will reveal whether Congress intervenes, trading partners retaliate, or the administration pursues even bolder steps.

This latest chapter underscores the unpredictable nature of trade policy in the current administration—legal setbacks are met not with retreat, but with reinvention. Global businesses and investors are watching closely as the implications unfold.
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