US Imposes 10% Global Tariff Following Supreme Court Ruling, Despite Earlier Plan For Higher Rate
The United States has imposed a new global tariff at a 10% rate, following a Supreme Court ruling that invalidated earlier tariffs deemed to have been illegally justified under emergency grounds.
In response to the court’s decision, President Donald Trump initially announced a temporary global tariff of 10%. However, later on Saturday, he said the rate would be increased to 15%.
Despite this, a notice issued by US Customs and Border Protection (CBP), described as providing “guidance regarding the February 20, 2026, Presidential Proclamation,” stated that imports except for products covered by exemptions would be subject to “an additional ad valorem rate of 10%.”
Uncertainty Over Lower Tariff Rate
The CBP notice added to uncertainty around US trade policy, as it did not explain why the lower 10% rate was applied instead of the previously announced increase. The Financial Times quoted a White House official as saying that the higher 15% tariff would be introduced later. Reuters could not immediately confirm this.
Deutsche Bank analysts noted in a statement, “Remember that Trump is delivering the State of the Union address tonight, so it’s possible we might get a better sense of the next steps on tariffs.”
Market participants cited uncertainty over the trade outlook as one factor behind declining European shares on Tuesday. The pan-European STOXX 600 index fell 0.1% by 0915 GMT.
The new tariffs took effect at midnight, while the collection of tariffs annulled by the Supreme Court was halted. Those previously imposed duties had ranged from 10% to as much as 50%.
It remains unclear whether companies will receive refunds for tariff payments made under the regime struck down by the Supreme Court.
Under Section 122 law, the president has the authority to impose such duties for up to 150 days to address “large and serious” balance-of-payments deficits and “fundamental international payments problems.”
Also Read: A Leh-Bound SpiceJet Flight Returns Safely to Delhi After Mid-Air Engine Issue
Trump’s tariff order cited a serious balance-of-payments deficit, pointing to a $1.2 trillion annual US goods trade deficit, a current account deficit equivalent to 4% of GDP, and a reversal of the US primary income surplus.
Trump Issues Warning on Trade Agreements
On Monday, Trump warned countries against backing away from previously negotiated trade agreements with the United States, cautioning that they could face significantly higher tariffs under other laws if they did so.
Japan said it had asked the United States to ensure its treatment under the new tariff system would remain as favourable as under its existing agreement. The European Union, Britain, and Taiwan also indicated their preference to continue operating under their current trade deals.
China, meanwhile, urged Washington to abandon what it described as “unilateral tariffs” and expressed willingness to conduct another round of trade talks with the United States, according to a statement from the country’s commerce ministry on Tuesday.
[Inputs With Agencies]