Trump Orders 10% Import Duty After Supreme Court Limits Presidential Tariff Authority, Signals 15% Worldwide Increase
Within a day of a Supreme Court ruling curtailing the President's authority to impose certain tariffs (seeUS Supreme Court Strikes Down Trump Tariffs (20 February 2026)), President Donald J. Trump escalated US trade restrictions by ordering a temporary 10% import duty and later announcing an immediate increase to a 15% worldwide tariff.
On 20 February 2026, Trump signed a proclamation imposing a 10% ad valorem duty for 150 days on most imports under section 122 of the Trade Act of 1974, citing "large and serious balance-of-payments deficits, an imminent and significant depreciation of its currency in foreign exchange markets, or an international balance-of-payments disequilibrium". The measure takes effect on 24 February 2026 and includes wide exemptions, notably for pharmaceuticals, energy products, vehicles and parts, aerospace products, certain electronics, and USMCA-compliant goods from Canada and Mexico.
On the same day, Trump issued an Executive Order continuing the suspension of duty-free de minimis treatment for all countries, directing US Customs and Border Protection to collect duties on low-value shipments, including those sent through the international postal network. The order ties the applicable duty rate for covered postal shipments directly to the temporary import surcharge imposed under the 20 February 2026 proclamation.
On 21 February 2026, Trump declared on Truth Social that the 10% worldwide tariff would be raised to 15%, a level he said is "fully allowed, and legally tested." Trump criticized the 20 February 2026 Supreme Court decision as "ridiculous, poorly written, and extraordinarily anti-American," and said the administration would determine and issue new, legally permissible tariffs in the coming months. As of the time of writing, no proclamation, executive order, or Customs guidance implementing a 15% tariff rate has been issued.
In a Fact Sheet, the White House emphasized that, notwithstanding the Court's ruling, the administration will continue pursuing reshoring and trade rebalancing through remaining statutory authorities and negotiated agreements.
IBFD will continue to monitor developments and report further as information becomes available. Report from Jannica Santos, Regional Editor. Follow our reporting on this via our daily Tax News Service (subscribers only).
Note: Section 122 of the Trade Act of 1974 gives the President of the United States a temporary, emergency-style power to restrict imports when the country is facing serious balance-of-payments or international monetary problems.