US President Announces 10% Global Tariff

On 20th February 2026, U.S. President Donald Trump announced the imposition of a new 10% global tariff under Section 122 of the Trade Act of 1974, following a Supreme Court decision that struck down his earlier sweeping tariff measures.

Key Points

Legal Basis – Section 122: Section 122 of the Trade Act of 1974 authorises the U.S. President to impose temporary import surcharges of up to 15% for a maximum of 150 days in cases of serious balance-of-payments issues or rapid dollar depreciation.
Initiation of Trade Investigations: The administration is also initiating investigations under Section 301 and other trade provisions to address alleged unfair trading practices by foreign countries and companies.
Focus on Trade Protection: The move signals a renewed protectionist trade approach aimed at safeguarding domestic industries and addressing perceived trade imbalances.