Daniel Foster - Senior Editor, Economy

WASHINGTON – Former President Donald Trump, following a Supreme Court decision invalidating a significant portion of the tariffs he imposed during his presidency, announced plans to implement a new “global tariff” of 10% on all imports, a move that immediately sparked concerns about a potential trade war and drew criticism from European officials.

The Supreme Court ruling, delivered on February 20, 2026, found that Trump had exceeded his authority under the International Emergency Economic Powers Act (IEEPA) in unilaterally imposing tariffs without Congressional approval. The decision specifically targeted tariffs imposed on goods from the European Union, among others. The court, in a 6-3 decision, asserted that the president does not have the power to impose tariffs without explicit authorization from Congress.

Speaking at a press conference shortly after the ruling, Trump characterized the decision as “influenced by foreign powers” and vowed to circumvent it through alternative legal mechanisms. “We’re going to be putting on a 10% tariff – a global tariff – and it’s going to be fantastic for this country,” he stated, according to reports from Le Monde. He cited unspecified “other laws” that he believes will support his ability to impose the new tariffs.

The announcement has already created fissures within the Republican party. Whereas some Republicans have historically supported Trump’s protectionist trade policies, others expressed discomfort with what amounts to a tax increase for American consumers and businesses. House Speaker Mike Johnson acknowledged the effectiveness of tariffs in a post on X, but stopped short of explicitly endorsing their reinstatement, signaling potential internal conflict.

The invalidated tariffs included those specifically targeting the European Union, imposed in the summer of 2025. The EU has yet to officially respond to Trump’s announcement of a new global tariff, but officials have privately expressed deep concern about the potential for escalating trade tensions. The future of the existing trade agreement between the US and the EU is now uncertain.

The Supreme Court’s decision stems from a case, Trump v. United States (Docket no. 23-939), argued in April 2024 and decided on July 1, 2024. The case centered on the question of whether a former president enjoys immunity from criminal prosecution for actions taken while in office. While the ruling addressed presidential immunity, it also had significant implications for the scope of presidential power regarding trade policy. The court held that while a former President is entitled to immunity for official acts, the imposition of tariffs requires Congressional authorization.

The Biden administration has not yet issued a formal statement regarding Trump’s proposed tariffs. The legal basis for the new tariffs remains unclear, and it is anticipated that the move will face immediate legal challenges. No date has been set for the implementation of the proposed 10% global tariff.