Economy February 24, 2026

10% Global Tariff Takes Effect After High Court Limits Presidential Authority

New levy enforced under Trade Act Section 122 applies broadly for 150 days as legal and diplomatic uncertainty persists

By Marcus Reed
10% Global Tariff Takes Effect After High Court Limits Presidential Authority

U.S. President Donald Trump's revised global tariff was implemented at a 10% rate at midnight on Tuesday after the Supreme Court curtailed the use of emergency powers that underpinned many earlier levies. The tariff, issued under Section 122 of the Trade Act of 1974, covers imports unless a specific exemption applies and will remain in force for 150 days - until July 24, 2026 - unless Congress approves an extension. Legal challenges and international requests for clarity have followed the court ruling, while questions remain about use of revenue already collected.

Key Points

  • A 10% global tariff imposed by the president took effect at midnight on Tuesday and is being enforced by U.S. Customs and Border Protection.
  • The tariff was issued under Section 122 of the Trade Act of 1974 after the Supreme Court found the earlier use of the International Emergency Economic Powers Act unlawful.
  • The levy applies to all imports unless exempt and will remain in place for 150 days until July 24, 2026, after which Congressional approval is required to continue it.

President Donald Trump's adjusted global import tariff went into force at a 10% rate at midnight on Tuesday, according to notices from U.S. customs authorities. The move follows a Supreme Court decision that invalidated much of the administration's earlier tariff program by finding that the president exceeded his authority under the International Emergency Economic Powers Act.

Customs communications made clear that the 10% levy applies to all imported goods unless a specific exemption is granted, and that the tariff is set to expire after 150 days. That window ends on July 24, 2026, after which the administration must secure Congressional approval to maintain the measure.

The 10% level was earlier put forward by the president in the immediate aftermath of the court ruling; he publicly signaled a preference for 15% shortly thereafter. Media coverage has indicated the White House is working to raise the tariff to that 15% level, but the customs messaging establishing the immediate rate is 10%.

The new tariff authority rests on Section 122 of the Trade Act of 1974. The Supreme Court ruling rejected broad reliance on the International Emergency Economic Powers Act for these trade levies, prompting the administration to reissue duties under a different statutory framework.

In a separate customs notice, the administration's suspension of the de minimis exemption for low-value imports was affirmed as still in place. That policy change continues to affect low-value shipments that previously entered the United States with minimal customs duties or paperwork.

Internationally, media reports over the weekend detailed a number of countries seeking renegotiation and clarification from the White House about the post-ruling tariff landscape. The court decision has prompted questions about the status of various trade actions the U.S. implemented in the past year.

The ruling also left unresolved what will happen to revenue already collected from the president's earlier tariffs. That haul is estimated to be at least more than $160 billion, though the court did not settle the disposition of those funds.

Commercial litigation has begun. On Monday evening, FedEx Corporation filed suit against the U.S. government, seeking a "full refund" of all duties paid under the tariffs that the court deemed illegal. The company was not alone; several other firms are reported to be pursuing legal remedies over the duties.


Clear summary

The Supreme Court limited the statutory basis for many of the president's previous tariffs, prompting a reissuance at 10% under Section 122. The levy applies broadly for 150 days and leaves open legal and diplomatic questions including the handling of revenue collected and potential further changes to the rate.

Key sectors affected

  • Transportation and logistics - import flows and customs processing are directly affected by tariff level and de minimis suspension.
  • Retail and manufacturing - costs of imported goods and supply-chain pricing channels may be influenced by the tariff.
  • Legal and financial services - litigation over duties and handling of collected revenue drives legal activity and potential refunds.

Risks

  • Legal uncertainty - companies including FedEx have begun litigation seeking refunds, creating unresolved legal exposure for importers and customs authorities.
  • Policy volatility - the White House has signaled a preference for a higher 15% rate, and media reports say officials are working on raising the levy, producing regulatory unpredictability for logistics and trade-dependent sectors.
  • International friction - multiple countries are reportedly seeking renegotiation and clarity following the Supreme Court ruling, which could complicate diplomatic and trade relationships.

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