Trump brings in new 10% tariff as Supreme Court rejects his global import taxes
BBC World
February 20, 2026
AI-Generated Deep Dive Summary
US President Donald Trump has introduced a new 10% global tariff after the Supreme Court ruled his previous import taxes unconstitutional. The court’s 6-3 decision found that Trump had exceeded his authority under the International Emergency Economic Powers Act, which he used to impose tariffs on goods from nearly every country. This move was widely criticized by businesses and US states, who argue that Congress never intended for the president to have such broad powers over trade policies.
The new tariffs aim to replace the invalidated measures, with Trump vowing to fight legal battles over refunds for companies affected by the previous tariffs. He has also hinted at using alternative laws to continue his trade policies, which he claims are meant to boost US manufacturing and investment. However, the ruling marks a significant win for businesses and states, opening the door to potentially billions in tariff refunds while injecting uncertainty into global trade relations.
The decision was notable for its bipartisan support, with conservative justices Amy Coney Barrett and Neil Gorsuch joining liberals in striking down the tariffs. Trump expressed frustration with these justices, calling them “fools” and “unpatriotic.” Meanwhile, businesses cautiously welcomed the ruling, with many expressing relief over the potential end of costly tariffs and the restoration of normal supply chains.
The outcome highlights the ongoing tension between executive authority and Congressional intent in matters of trade policy. As Trump continues to push for alternative legal avenues to enforce his tariff policies, the case sets a precedent for future trade disputes and underscores the delicate balance of power within the US government.
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Originally published on BBC World on 2/20/2026