President Donald Trump has imposed a fresh 10 percent tariff on imports into the United States, hours after the Supreme Court of the United States struck down several of his sweeping trade duties in a sharp rebuke of his tariff strategy.
Trump signed the order in the Oval Office, announcing on social media that the measure would take effect “almost immediately.” A White House fact sheet said the new tariff will begin on February 24 and remain in force for 150 days.
Exemptions will apply to sectors already under separate investigations, including pharmaceuticals, as well as goods covered by the US-Mexico-Canada trade agreement.
The White House said even countries that had negotiated tariff arrangements with the administration would now face the flat 10 percent duty, regardless of previously agreed higher rates. However, an official said the administration could later explore “more appropriate or pre-negotiated” tariff structures.
Court blocks emergency powers route
Earlier on Friday, the Supreme Court ruled 6–3 that the 1977 International Emergency Economic Powers Act (IEEPA), which Trump had relied on to impose sudden tariffs on specific countries, does not grant the president authority to levy such duties.
In the majority opinion, Chief Justice John Roberts stated that the law contains “no reference to tariffs or duties,” adding that if Congress had intended to give the president such “distinct and extraordinary power,” it would have done so explicitly.
The ruling marks Trump’s most significant legal setback since returning to office 13 months ago, although the court has generally upheld expanded executive authority in other areas.
Trump, who nominated two of the justices in the majority, criticised the decision and insisted the ruling left him “more powerful,” arguing that alternative legal avenues allow broader tariff action.
Revenue, refunds and market reaction
Treasury Secretary Scott Bessent, speaking at the Economic Club of Dallas, said alternative mechanisms would ensure “virtually unchanged tariff revenue in 2026.”
The decision does not affect separate sector-specific tariffs on steel, aluminium and other goods, nor ongoing federal probes that could trigger additional industry-based duties.
In court filings, the administration had indicated that companies would receive refunds if the tariffs were ruled unlawful. However, the judgment did not directly address refunds. Trump said legal disputes over potential repayments could drag on for years.
Justice Brett Kavanaugh, the lone Trump appointee to side with him, warned that any refund process could become a “mess.”
The Penn Wharton Budget Model projected that refunds could reach as much as $175 billion.
Meanwhile, the National Retail Federation welcomed the ruling, saying it provides “much-needed certainty” for businesses.
Data from the Budget Lab at Yale University showed that the effective average tariff rate would fall to 9.1 percent following the ruling, down from 16.9 percent, though still the highest level since 1946, excluding 2025.
Wall Street shares rose modestly after the decision, which analysts said had largely been anticipated.
Political and international response
California Governor Gavin Newsom, seen as a potential Democratic presidential contender in 2028, called for immediate refunds, describing the tariffs as an “illegal cash grab.”
Senator Elizabeth Warren cautioned that there is currently no clear legal mechanism for consumers and many small businesses to recover funds already paid.
Key US trading partners, including the European Union, the United Kingdom and Canada, said they were reviewing the ruling.
Candace Laing, president of the Canadian Chamber of Commerce, warned that Ottawa should brace for “new, blunter mechanisms” as Washington seeks to reassert trade pressure.
AFP
