The United States imposed a new 10% global tariff on all countries Tuesday, February 24, a move initiated just days after Donald Trump’s return to the White House. The action, set to last for 150 days, signals a renewed commitment to protectionist trade policies. Still, the tariff’s implementation follows a Supreme Court ruling on February 20th that invalidated a series of earlier tariffs enacted by the Trump administration.
The Supreme Court found that the previous tariffs were improperly justified under the International Emergency Economic Powers Act (IEEPA), determining that the U.S. Was not in a state of national emergency, rendering the invocation of the act illegal. With that legal avenue closed, President Trump swiftly activated Section 122 of the Trade Act of 1974, a provision never before used to impose broad-based taxes. This section allows the President to reduce imports by levying tariffs of up to 15% to address significant imbalances in the U.S. Balance of payments.
While initially announced at 15%, the new tariffs went into effect Tuesday at a rate of 10%. This new tax is layered on top of existing tariffs that were not overturned by the Supreme Court. Prior to the invalidated increases, the European Union, for example, faced an average tariff of 4.8%. However, specific products, such as European cheeses, already subject to higher rates – 14.8% in 2024 – now approach tariffs nearing 30%.
Several countries appear to benefit from the shift. Nations that faced the most severe tariffs during Trump’s 2025 trade war – Brazil (50%), Switzerland (39%), Canada (30%), and Mexico (25%) – are now subject to less punitive rates. Countries in Southeast Asia, including Indonesia, Malaysia, the Philippines, Thailand, and Cambodia, which previously faced 19% tariffs, also spot a reduction in trade barriers. China emerges as a significant beneficiary, with tariffs reduced from a peak of 145% to 30% following a “trade truce” agreement with Washington.
Conversely, allies previously spared from the harshest tariffs now face the new 10% levy. Argentina, under President Javier Milei, which enjoyed a 10% tariff rate, is now subject to the broader tax. The decision has created uncertainty surrounding existing trade agreements.
In Brussels, the European Parliament has suspended ratification of the Turnberry Agreement, a negotiation that had reduced tariffs from 25% to 15%. The European Commission expressed frustration, stating “a deal is a deal,” and voiced concerns about the impact of the new regulations on the European economy. The suspension of Turnberry also disadvantages the U.S., as the EU had committed to removing taxes on numerous American products in exchange for the tariff reductions.
Japan has requested assurances from the U.S. That its treatment under the new tariff regime will be as favorable as under the existing agreement. The United Kingdom and Taiwan have also indicated a preference for maintaining their current agreements. The trade deal between Washington and India is also at risk. To avoid 50% tariffs, New Delhi had previously agreed to remove its tariffs and non-tariff barriers on American goods and commit to purchasing over $500 billion worth of U.S. Products. A clause in the agreement allowing for review in the event of tariff changes could allow India to reconsider its commitments.
Trump, addressing the situation on Truth Social, warned that any country attempting to “play with the ridiculous decision of the Supreme Court” would face “a much higher tariff, and worse than anything they have recently accepted.”
