Supreme Court strikes down Trump tariffs; President announces 10% global surcharge

The U.S. Supreme Court ruled on February 20, 2026, that President Trump’s sweeping tariff program is illegal, invalidating levies imposed under the International Emergency Economic Powers Act. The 6-3 decision halts tariffs announced last year and may trigger over $100 billion in refunds for importers. In response, Trump announced a new 10% "global tariff" effective immediately, utilizing Section 122 of the Trade Act of 1974. This statute allows the president to impose duties of up to 15% for 150 days to address trade deficits. The ruling arrives as the administration navigates inflationary pressures ahead of midterm elections.