Economy February 20, 2026

White House to Apply 10% Global Tariff for 150 Days, Citing Trade Act Authority

Administration moves to replace struck-down emergency duties with temporary duties under Section 122 of the Trade Act of 1974

By Marcus Reed
White House to Apply 10% Global Tariff for 150 Days, Citing Trade Act Authority

President Donald Trump announced on Friday a plan to impose a 10% global tariff for 150 days, to be enacted under Section 122 of the Trade Act of 1974. The duties would be layered on top of current tariffs and follow a Supreme Court decision that found the prior broad global tariffs illegal under the International Emergency Economic Powers Act. The administration is also initiating several Section 301 investigations into unfair trade practices.

Key Points

  • President announced a 10% global tariff to run for 150 days, to be issued under Section 122 of the Trade Act of 1974.
  • Section 122 allows duties up to 15% for up to 150 days and does not require investigations or additional procedural steps; the new duties would be applied on top of existing tariffs.
  • The move follows a Supreme Court ruling that the prior broad tariffs under the International Emergency Economic Powers Act were unlawful; the administration is also launching several Section 301 investigations.

President Donald Trump said on Friday that his administration will impose a 10% global tariff for 150 days, replacing the emergency duties the Supreme Court recently invalidated.

According to the president, the tariff order will be issued under Section 122 of the Trade Act of 1974. That statute allows the president to impose duties of up to 15% for a period not exceeding 150 days on "any and all countries" in connection with balance of payments issues. The law, the administration notes, does not require prior investigations or other procedural constraints to implement such duties.

The announcement follows a Supreme Court ruling that found the administration's earlier broad global tariffs, implemented under the International Emergency Economic Powers Act, were unlawful. The court determined that those duties exceeded the authority granted under that particular statute.

Trump said his administration has alternative tools available to protect the country's trading position. He indicated these alternatives could generate additional revenue and bolster the government's negotiating posture, though he did not provide further operational details about timing or specific revenue estimates.

In parallel with the Section 122 action, the administration is opening several Section 301 investigations aimed at countering unfair trade practices by other countries and companies, according to the president.

The planned 10% tariff would be applied in addition to tariffs already in place, creating an additive effect on existing duties. The new measure is framed by the administration as a temporary remedy the president can deploy within the limits set by Section 122, including the 150-day maximum duration and the 15% ceiling on duties under that authority.


Context and implications

This move shifts the legal basis for broad, temporary duties from the International Emergency Economic Powers Act to the Trade Act of 1974. The administration has signaled a multi-pronged approach by combining the Section 122 tariff authority with Section 301 investigations as tools to address what it considers unfair trading behavior.

The announcement makes clear the duties would stack on top of current tariffs, and that the administration views the statutory pathway under Section 122 as permitting rapid deployment without the investigatory requirements that apply under other trade laws.

Risks

  • Legal constraint highlighted by the Supreme Court ruling that invalidated previous broad tariffs - this raises uncertainty about the durability and legal vulnerability of tariff actions.
  • The temporary nature of the Section 122 authority - duties are limited to a maximum of 150 days and a statutory ceiling of 15%, which may limit long-term policy options.
  • Stacking the new 10% duty on top of existing tariffs could amplify costs for import-dependent sectors, potentially affecting industries in manufacturing, transportation, and logistics.

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