---
layout: post
title: "Trump's 10% Global Tariff: A Workaround After Supreme Court Smackdown"
description: "After the Supreme Court rejected his tariff authority, Trump pivots to a new legal strategy. Here's what it means for your wallet."
date: 2026-02-20 20:00:26 +0530
author: adam
image: 'https://images.unsplant.com/photo-1768663319879-e6a2b4c7408f?q=80&w=2070'
video_embed:
tags: [news, business]
tags_color: '#4caf50'
---
The Supreme Court handed Trump a stinging defeat on Friday, striking down his sweeping reciprocal tariffs in a 6-3 decision that invalidated the legal foundation of his entire trade strategy. But if you thought that would slow down his tariff ambitions, think again.
Within hours, Trump fired back with a new executive order slapping a 10% global tariff on imports, invoking Section 122 of the Trade Act of 1974. It's the ultimate political move: lose the court battle, change the rules of the game, and keep swinging.
## The Court Says No, Trump Says Yes Anyway
The Supreme Court's majority ruled that the International Emergency Economic Powers Act, or IEEPA, simply doesn't give the president the authority to impose tariffs. This was a massive problem for Trump because most of his tariff revenue last year came from IEEPA-based duties. We're talking hundreds of billions of dollars.
What made this even more personal was that Trump's own nominees, Justices Neil Gorsuch and Amy Coney Barrett, sided with the majority. His reaction was predictably explosive. "I think it's an embarrassment to their families," he said. "The two of them."
But here's the thing about being a president who believes in executive power: when one legal avenue gets blocked, you find another. And Trump seems to have plenty of old statutes collecting dust that nobody's really tested in court lately.
## A New Tariff Route, Same Old Results
The new 10% global tariff comes with a 150-day clock. After that, it either expires or Congress has to sign off on extending it. Treasury Secretary Scott Bessent quickly reassured markets that the administration will replace the rejected duties using "other existing tariff laws," keeping tariff revenue basically unchanged in 2026.
So what does this mean for countries that already had deals? The EU, which negotiated a 15% tariff rate, is now looking at a 10% baseline from this new executive order. China, which was paying 35% total across multiple tariff schemes, might actually see a reduction initially. But don't get too comfortable.
The White House official made clear that as the administration explores "additional legal tariff pathways," those rates could snap right back up. Translation: this 10% is a floor, not a ceiling.
## Fighting With Congress (Or Not)
When asked why he wasn't working with the legislative branch on trade policy, Trump gave a pretty candid answer: "I don't have to. I have the right to do tariffs." He also said "we have the right to do pretty much what we want to do."
That kind of executive confidence might feel refreshing to his supporters or terrifying to his critics, depending on where you sit. Either way, it underscores a fundamental tension in how tariff authority actually works in America. The Constitution technically gives Congress control of trade policy. But modern presidents have consistently stretched the boundaries of executive power, and courts have often let them.
Visit [our <a href="https://infeeds.com/tags/?tag=business">business</a> section] for more on how economic policy shapes markets.
## What Comes Next
Trump also announced that tariffs under Section 232 (national security) and Section 301 (unfair trade practices) will remain "in full force and effect." And he's launching new Section 301 investigations that could trigger even more tariffs down the road.
So the Supreme Court didn't actually stop the tariff agenda. It just forced it to take a different legal route. Whether that route holds up in court, or whether Congress eventually forces Trump to negotiate, remains an open question.
The tariff wars aren't over. They're just entering a new phase.
