#TrumpAnnouncesNewTariffs

Title: Trump’s New Tariffs Take Effect Today Amidst Supreme Court Showdown

The trade landscape has shifted once again. Following a major Supreme Court ruling that struck down his previous tariff regime, President Donald Trump has implemented a new set of global tariffs effective today, February 24, 2026 .

Last week, the Supreme Court delivered a 6-3 decision ruling that Trump’s use of the 1977 International Emergency Economic Powers Act (IEEPA) to impose sweeping "reciprocal" tariffs was illegal . The Court stated the law did not authorize the president to unilaterally impose such duties during peacetime .

In swift response, the administration pivoted to a backup plan. Trump signed an executive order invoking Section 122 of the 1974 Trade Act, a never-before-used provision that allows temporary import restrictions . This new action imposes a baseline 10% tariff on imports from all countries, which took effect today .

However, the situation remains fluid. Over the weekend, Trump threatened to increase this rate to 15% and warned that any country attempting to "play games" following the court's decision would face "much higher" tariffs .

Key Details of the New Tariffs:

· Legal Basis: Section 122 of the 1974 Trade Act (replaces IEEPA) .
· Rate: 10% (initially), with a threatened increase to 15% .
· Duration: The tariffs are temporary, set to last for 150 days unless extended by Congress .
· Exemptions: The tariffs do not apply to all goods. Exemptions include specific critical minerals, pharmaceutical products, certain agricultural goods, and items covered by the USMCA agreement with Canada and Mexico .

Market & Global Reaction:
The uncertainty has created mixed reactions in global markets. While the new 10% rate is lower than some previous country-specific duties, it resets the playing field for many allies .

· Winners & Losers: Countries like China, India, and Brazil are technically seeing lower average tariff rates compared to the "Liberation Day" framework, giving their markets a boost. Conversely, nations like the UK and Australia, which had previously negotiated 10% rates, may now be worse off if the rate holds or increases .
· International Response: The European Union has suspended ratification of a trade deal with the US, and India has postponed finalization talks to assess the impact .
· Market Movement: Asian markets saw gains following the clarity, while US and European equities showed volatility. The dollar dipped amid the ongoing uncertainty .

The Refund Question:
A major unresolved issue is refunds. Because the Supreme Court deemed the previous IEEPA tariffs illegal, importers who paid those duties may be entitled to refunds. Experts estimate the refund liability could reach up to $175 billion . Companies like FedEx have already filed lawsuits seeking to recoup these payments .

The administration insists these new measures will protect American workers and address trade imbalances, but legal experts suggest this new use of Section 122 may also face court challenges . For now, the 10% levy is the law of the land for the next five months, marking a new chapter in US trade policy.