Trump to pursue 10% tariff after Supreme Court rejects emergency levies

US President Donald Trump announced plans to impose a 10% global tariff on February 20, 2026, following a Supreme Court ruling that struck down his previous emergency levies. The decision shifts the administration's trade strategy rather than ending it. The court ruled 6-3 that Trump exceeded authority under the International Emergency Economic Powers Act. In response, the president will utilize Section 122 of the Trade Act of 1974, permitting unilateral duties of up to 15% for 150 days. Analysts at Desjardins note the current effective tariff rate on Canadian goods is 3.7%. If USMCA exemptions do not apply to the new measures, Canadian exporters face higher costs, while existing Section 232 duties on steel and aluminum remain.