US Supreme Court strikes down Trump tariffs; trade uncertainty persists

The US Supreme Court ruled against President Trump’s tariff use on February 20, 2026, slashing the trade-weighted average tariff from 15.4% to 8.3%. Despite the legal setback, Trump announced new 10% global tariffs for an initial 150-day period, ensuring continued market volatility. The decision specifically nullifies levies enacted under the International Emergency Economic Powers Act, which had generated over $175 billion. Economists at ING predict tariffs will persist through alternative legal vehicles. The IMF maintains a global growth forecast of 3.3% for 2026, while China reported a record $1.2 trillion trade surplus in 2025.