Supreme Court Rejects Trump IEEPA Tariffs, New 15% Global Tariff Announced

The U.S. Supreme Court issued a decision on February 20, 2026, determining that President Trump’s application of the International Emergency Economic Powers Act (IEEPA) for global tariffs was unconstitutional. The ruling prompted immediate executive actions to establish new import tariffs through a different legal authority.

After the Supreme Court’s 6-3 decision, President Trump signed an executive order based on Section 122 of the Trade Act of 1974. This order imposed a temporary 10% tariff on all imports, with the measure scheduled to take effect on February 24, 2026.

President Trump subsequently announced on February 21, 2026, that the tariff rate would be raised to 15%. This adjustment brought the tariff to the maximum level permitted by Section 122 of the Trade Act of 1974, according to the announcement made via social media.

U.S. Trade Representative Jamieson Greer stated that existing tariff agreements with several countries, including the United Kingdom, European Union, Japan, and Switzerland, would remain in place. Greer indicated that these agreements would not be overridden by the new global tariff rate.

What the numbers show

• Supreme Court decision delivered on February 20, 2026
• Initial 10% global tariff signed into effect, set for February 24, 2026
• Tariff rate raised to 15% on February 21, 2026, the maximum allowed under Section 122

Australia’s Trade and Tourism Minister Don Farrell said that Australia expects the United States to continue honoring the Australia-U.S. Free Trade Agreement. According to Farrell, this agreement provides for tariff-free access for Australian goods, and Australia anticipates that this arrangement will be maintained.

A UK business leader, Andy Haldane, stated that if the global tariff increases from 10% to 15%, the United Kingdom would be among the countries most affected by the change. This statement was made in the context of ongoing discussions regarding the potential impact of the new tariff measures.

Industry reaction

The U.S. Trade Representative’s office stated that existing agreements with the UK, EU, Japan, and Switzerland would be upheld, despite the introduction of the new 15% global tariff. This position was communicated to address concerns from trading partners about the scope of the new tariffs.

Australia’s Trade and Tourism Minister Don Farrell said that Australia expects the U.S. to comply with the terms of the Australia-U.S. Free Trade Agreement, ensuring continued tariff-free access for Australian exports under the current arrangements.

The Supreme Court’s decision and the subsequent executive actions have prompted responses from both U.S. officials and international partners. Ongoing statements from government representatives indicate that the implementation of the new tariff will be monitored in relation to existing trade agreements.

* This article is based on publicly available information at the time of writing.