How will Trump's new 10% global tariffs work and what's next?

BBC News - WorldEN 6 min read 100% complete February 21, 2026 at 04:25 AM

AI Summary

long article 6 min

The US Supreme Court ruled that President Trump overstepped his power by imposing sweeping global tariffs under the International Emergency Economic Powers Act (IEEPA). The court stated that Congress, not the president, has the power to create new taxes. Following the ruling, Trump signed a proclamation imposing a new, temporary 10% tariff on goods from all countries using Section 122 of the 1974 Trade Act. This action comes after the Supreme Court rejected tariffs enacted under IEEPA, which Trump had used to tax goods from countries like China, Mexico, and Canada, citing issues like fentanyl trafficking and the US trade deficit. The legality of refunds for the estimated $130 billion generated by the original tariffs is uncertain and may face further legal challenges. Tariffs imposed under other laws, such as those on steel and aluminum, remain in place.

Key Entities & Roles

Key Player Opposition Context

US Congress 50% Mexico 50% Canada 50% China 60% International Emergency Economic Powers Act (IEEPA) ×470% United States ×475% Supreme Court ×585% Donald Trump ×1095%

Keywords

tariffs 100% supreme court 80% trade 70% imports 60% international emergency economic powers act 60% trade act 50% global tariffs 50% exports 40% trade deficit 40%