Washington, Feb 21, 2026 — U.S. President Donald Trump has signed an executive order imposing a temporary 10 percent tariff on all imported goods, just hours after the Supreme Court of the United States declared his earlier tariff framework unlawful. The new measure will take effect next Tuesday and remain in force for up to 150 days.
The administration invoked Section 122 of the Trade Act of 1974, which allows the president to impose tariffs of up to 15 percent for 150 days to address balance-of-payments concerns. The move comes after the court invalidated tariffs ranging from 10 to 50 percent that had been introduced under the International Emergency Economic Powers Act (IEEPA) of 1977.
Speaking to reporters, Trump said the United States had “excellent options” and insisted the new tariffs would strengthen the economy. He also signaled that the rate could increase following further investigations, particularly targeting countries accused of unfair trade practices.
Key Exemptions Remain
According to the executive order, several categories will remain exempt from the new 10 percent tariff. These include aerospace-related products, passenger vehicles and certain light trucks, goods compliant with the United States–Mexico–Canada Agreement (USMCA), as well as pharmaceuticals, select critical minerals, and specific agricultural products.
Treasury Secretary Scott Bessent stated that despite the legal complications, projected tariff revenue for 2026 would remain unchanged. In an interview with Fox News, he said the administration would collect “the same amount of tariff revenue,” although the mechanism would now be more indirect and legally complex.
$175 Billion in Tariff Revenue at Stake
Following the Supreme Court ruling, approximately $175 billion in tariffs collected over the past year could potentially be subject to refunds for importers. However, Trump indicated that the matter could remain tied up in legal proceedings for two to five years, suggesting no immediate repayment.
Meanwhile, the administration has directed the U.S. Trade Representative to launch fresh investigations into alleged unfair trade practices by major partners, including China, Brazil, Vietnam, and Canada. Further details on the scope and timeline of these probes are expected in the coming days.
The sweeping tariff decision has renewed uncertainty in global markets, raising concerns about potential retaliatory measures and broader implications for world trade and economic stability.
