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

February 21, 2026

The US Supreme Court ruled 6-3 that President Trump exceeded his authority by using emergency powers legislation from 1977 to impose widespread tariffs on nearly all countries. The decision, which only addressed tariffs enacted under the International Emergency Economic Powers Act, left unresolved whether approximately $130 billion collected through these duties should be refunded to businesses and consumers. Within hours of the ruling, Trump responded by invoking an alternative legal provision, Section 122 of the 1974 Trade Act, to implement replacement 10% tariffs on most imports for up to 150 days.

Who is affected

President Donald Trump and his administration
US consumers and businesses who paid an estimated $130 billion in tariffs
Companies importing goods from China, Mexico, Canada, and nearly every other country
Over 1,000 businesses that had already requested tariff refunds before the ruling
US Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer
American households (potentially eligible for refunds according to some officials)
International trading partners including the UK, India, EU, Canada, Mexico, and Central American countries
Importers of steel, aluminum, lumber, automotive products, and other industry-specific goods
The US Congress

What action is being taken

Trump signed a proclamation imposing new 10% tariffs under Section 122 of the 1974 Trade Act
The Trump administration is investigating whether tariffs can be imposed under Section 301 of the Trade Act of 1974
More than 1,000 businesses are asking for tariff refunds
The US Trade Representative (Jamieson Greer) can investigate countries' trade practices under Section 301
Starting February 24 at 12:01 EST, new 10% tariffs are being imposed on almost all US imports
The administration is continuing to impose tariffs under Section 232 of the Trade Expansion Act of 1962

Why it matters

This ruling represents a significant check on presidential power, affirming that Congress, not the president, has constitutional authority to levy taxes. The decision creates massive financial uncertainty, potentially affecting $130 billion already collected and leaving open questions about refunds that could take years to resolve through litigation. The ruling forces the administration to navigate alternative legal pathways to maintain its tariff policy, creating a complex patchwork of duties under different legal authorities with varying time limits and requirements. The broader implications affect international trade relationships, domestic consumer prices, business planning, and the balance of power between executive and legislative branches on economic policy.

What's next

New 10% tariffs under Section 122 take effect on February 24 at 12:01 EST (05:01 GMT)
Section 122 tariffs can only last 150 days before Congress must step in
The US international trade court is expected to decide the issue of refunds
The Trump administration will continue investigations under Section 232 and Section 301 to impose additional tariffs
Litigation over the $130 billion in refunds is expected to continue for years
Countries with trade deals (UK, India, EU) will face the new 10% tariff and are expected to continue abiding by previously negotiated concessions
The number of businesses requesting tariff refunds is likely to grow

Read full article from source: BBC