Trump’s New 10% Global Tariff: A Temporary Fix or a Long-Term Gamble?

On February 20, 2026, President Donald Trump signed an executive order imposing a temporary 10% global tariff on imports into the United States. This move came just hours after the Supreme Court struck down many of his earlier sweeping tariffs, ruling that they exceeded presidential authority. The new tariff is issued under Section 122 of the Trade Act of 1974, which allows temporary duties lasting up to 150 days. Politico U.S. News & World Report

Scope: Applies broadly to most imports entering the U.S.
Duration: Limited to 150 days, unless renewed or replaced by other measures.
Exemptions: Certain goods such as food imports, critical minerals, electronics, cars, and items covered under trade deals with Canada and Mexico are excluded. CBS News
Legal Basis: Unlike the struck-down tariffs, this one rests on a different statutory authority, making it harder to challenge in court.


Short-Term Impact: Importers face immediate cost increases, which may be passed on to consumers. Businesses reliant on global supply chains could see disruptions.
Inflationary Pressure: A broad tariff risks raising consumer prices, particularly for everyday goods not exempted.
Global Trade Relations: Allies and rivals alike may view this as a provocative move, potentially sparking retaliatory measures.
Political Context
The Supreme Court’s rebuke was a significant setback for Trump’s trade agenda, which has relied heavily on tariffs as a tool of leverage. By pivoting quickly to a new legal authority, Trump demonstrates determination to maintain his protectionist stance. However, critics argue this is more about political optics than sound economic policy. Al Arabiya English CNBC

Strengths: Swift response to maintain leverage; temporary nature may limit long-term damage; exemptions soften the blow for critical sectors.
Weaknesses: Risks fueling inflation; undermines trust with trade partners; temporary status creates uncertainty for businesses.