Washington D.C. – A new 10% tariff on imported goods went into effect Tuesday across the United States, just days after the Supreme Court curtailed President Donald Trump’s authority to impose sweeping tariffs. The move signals a renewed push by the administration to reshape global trade, despite a recent legal setback.
The Supreme Court’s 6-3 ruling on February 20, 2026, struck down many of the tariffs Trump had implemented under the International Emergency Economic Powers Act (IEEPA) of 1977, finding that the president had exceeded his congressional authority. The decision opens the door to potentially billions of dollars in refunds for importers, estimated at over $200 billion in 2025, though the court did not rule on the refund process itself. Despite this defeat, the administration swiftly responded with the new, broad-based tariff, initially announced at 10% and briefly floated at 15% before settling back at the lower rate.
The new tariffs apply to all goods not specifically exempted, according to a notice issued by U.S. Customs and Border Protection. Collection began at midnight Tuesday, while the collection of tariffs invalidated by the Supreme Court was halted. Those previously imposed tariffs ranged from 10% to as much as 50%.
The administration justified the new tariffs as a means to address what it describes as significant U.S. Balance-of-payments deficits. A White House press release cited a $1.2 trillion annual goods trade deficit, a current account deficit representing 4% of gross domestic product, and a reversal of the U.S. Primary income surplus as justification for the measures. The duty is set to last for 150 days unless Congress extends it, and is widely viewed as a temporary measure while the administration seeks a more lasting trade policy.
Supreme Court Limits Presidential Power
The Supreme Court case, Learning Resources, Inc. V. Trump, centered on the scope of presidential power under IEEPA. The court determined that Trump had overstepped his authority by using the 1977 law to impose tariffs on a wide range of countries without clear congressional authorization. The ruling, as analyzed by SCOTUSblog, represents a significant check on presidential power regarding trade policy. Read more about the ruling at SCOTUSblog.
Justice Brett Kavanaugh, in a dissenting opinion, warned that the decision could create uncertainty regarding existing trade agreements and potentially require substantial refunds to importers, some of whom may have already passed on the costs to consumers. He also noted that IEEPA tariffs have “helped facilitate trade deals worth trillions of dollars” with nations including China, the United Kingdom, and Japan.
International Reactions and Potential Trade Talks
Beijing has urged the U.S. To abandon its “unilateral tariffs” and indicated a willingness to engage in another round of trade talks, according to a statement from China’s Ministry of Commerce. China stated it will decide “at the right time” on adjusting its countermeasures to the latest U.S. Tariff adjustments.
Japan has also requested assurances from Washington that its treatment under the new tariff regime will be as favorable as under existing agreements, particularly ahead of the Japanese prime minister’s upcoming visit to the U.S. A call between Japan’s trade minister and U.S. Commerce Secretary Howard Lutnick affirmed both countries’ commitment to implementing a trade deal struck last year “in quality faith and without delay,” according to the Japanese Ministry of Economy, Trade and Industry.
On Monday, Trump warned countries against backing away from recently negotiated trade deals with the U.S., threatening to impose even higher duties under different trade laws. This statement underscores the administration’s determination to pursue its trade agenda, even in the face of legal challenges.
What to Watch Next
The coming months will be critical as the administration navigates the fallout from the Supreme Court ruling and the implementation of the new tariffs. The 150-day window for the current tariffs will likely prompt further action from Congress, and the potential for legal challenges regarding the new tariffs remains high. The response from key trading partners, particularly China and Japan, will also be closely watched as the global trade landscape continues to evolve.
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