Trump's new global tariff comes into effect at 10%

BBC World

February 24, 2026

AI-Generated Deep Dive Summary

President Trump has imposed a new 10% global tariff effective from 24 February, following an executive order signed just hours after last week's Supreme Court ruling. While Trump previously threatened to raise the rate to 15%, no official directive has been issued yet. The levy is being applied under Section 122 of the 1974 Trade Act, which allows the president to impose tariffs for up to 150 days without congressional approval. The executive order cites the need to address international payment imbalances and rebalance trade relationships in favor of American workers, farmers, and manufacturers. Trump has argued that tariffs are essential to reducing America's trade deficit, which reached a record high last week, expanding by 2.1% compared to 2024 and surpassing $1.2 trillion. However, this move has sparked criticism and legal challenges. The administration has already collected at least $130 billion in tariffs using the 1977 International Emergency Economic Powers Act (IEEPA). Trump's decision was deemed "overreaching" by the Supreme Court in a 6-3 ruling, which found that his use of IEEPA last year exceeded presidential powers. The court's decision has left countries evaluating their trade deals with the U.S. The UK has warned it may take reciprocal action if the U.S. does not honor its tariff deal, though both sides have emphasized avoiding a trade war. Similarly, the European Union has suspended ratification of a previously agreed-upon deal, and India has deferred scheduled talks to finalize an agreement. These reactions highlight the potential global economic implications of Trump's tariffs. The situation underscores the delicate balance of international trade relations and the ongoing tensions between the U.S. and its trading partners. As countries reassess their strategies, the outcome could shape the future of global trade policies and economic stability.

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Originally published on BBC World on 2/24/2026