Washington (United States) (AFP) - Donald Trump announced on Friday that he had signed an executive order imposing a new 10% tariff on all countries, after the Supreme Court invalidated the sweeping international tariffs he had imposed that constitute a cornerstone of his economic agenda.

Published on: 02/20/2026 - 18:49 Last updated: 02/21/2026 - 02:16

The US President told his Truth Social platform, “It is a great honor for me to sign, from the Oval Office, an international tariff of 10% that applies to all countries and will go into effect almost immediately.”

The new tariffs are scheduled to take effect on February 24 for a period of 150 days, with exceptions remaining for sectors subject to different pathways, including pharmaceuticals and goods entering the United States under the United States-Mexico-Canada Agreement, according to the White House.

The new tariffs will also be imposed on countries that have signed trade agreements with the United States in recent months, but a White House official told AFP that “this is a temporary measure as the administration will seek to use other legal authorities to apply more appropriate or previously negotiated tariff rates.”

The court, with a conservative majority, concluded in its decision, which was supported by six members to three, that the International Emergency Economic Powers Act, which dates back to 1977, “does not give the president the authority to impose customs duties.”

Trump responded with extreme anger to the decision of the judges, two of whom he appointed, accusing the court, without any evidence, of being influenced by “foreign interests.”

He told reporters, "I am very disappointed in some members of the court, I am very disappointed, for not having the courage to do what is right for our country."

Big setback

The Supreme Court's decision does not affect sector-specific duties that the president imposed separately on imports of steel, aluminum and other goods. There are still ongoing government investigations that may lead to more fees on certain sectors.

But the decision is Trump's biggest defeat before the Supreme Court since his return to the White House last year.

Trump has long used tariffs as a pressure card and in negotiations. Upon his return to the presidency last year, he used unprecedented emergency economic powers to impose new tariffs on nearly all of America's trading partners.

The measures included imposing customs duties in response to what Washington considered unfair trade practices, in addition to separate packages of duties targeting major partners: Mexico, Canada and China, against the backdrop of drug flows and migration.

The court ruled Friday that “if Congress had intended to grant distinct and exceptional authority to impose tariffs” under the International Emergency Economic Powers Act, “it would have done so expressly as it has done in other tariff laws.”

The Supreme Court's decision confirms previous findings by lower courts that held that the tariffs imposed by Trump under the International Emergency Economic Powers Act were unlawful.

Three liberal and three conservative justices voted in favor of the decision, while conservative justices Clarence Thomas, Samuel Alito, and Brett Kavanaugh, whom Trump praised, opposed it.

Chief Justice John Roberts, in presenting his opinion, noted that “the International Emergency Economic Powers Act does not include any reference to tariffs or duties.”

- Refund the fees? -

US business groups welcomed the ruling, and the National Retail Federation said it "provides much-needed certainty" for US businesses and manufacturers.

The union added, "We call on the lower court to ensure a smooth process for refunding customs duties to American suppliers."

The Supreme Court did not address the extent to which suppliers can recover the fees they paid.

Senate Democratic Minority Leader Chuck Schumer praised the decision as a “victory for the pocketbooks” of American consumers.

While California Governor Gavin Newsom called for the money to be returned to Americans after its “illegal seizure,” Judge Brett Kavanaugh warned that this process could be “chaotic.”

Trump considered that resolving this legal issue may take years, saying, "We will end up in court within the next five years."

The University of Pennsylvania's Penn Wharton Budget Model predicted that the court's decision on the tariffs would result in a refund of up to $175 billion.

Estimates from the Budget Laboratory at Yale University indicate that consumers will face an effective tariff rate of 9.1 percent after Friday's decision, down from 16.9 percent. But the laboratory indicated that this rate “is still the highest since 1946,” with the exception of 2025.

The New York Stock Exchange closed higher on Friday, positively affected by the Supreme Court's decision.

"Prepare for new mechanisms"

Internationally, there were reactions to the ruling, as the European Union announced that it was “analyzing it carefully” and communicating with the US administration.

As for the United Kingdom, it indicated that it would cooperate with Washington to discuss the repercussions of the ruling.

A German government spokesman said that it "took note of the Supreme Court's decision. We are in close contact with the US government to obtain clarification on the next steps that must be taken to ensure the stability and predictability of trade relations."

Canada believed that the court's decision confirms that Trump's fees are "unjustified."

However, the Canadian Chamber of Commerce warned against considering the judicial decision as a “reset for US trade policy.” “Canada must prepare for new and more aggressive mechanisms to reimpose trade pressure, which could lead to broader impacts and greater disruption,” Chamber President Candace Laing said in a statement.

For its part, Mexico said that it is studying the potential consequences of the new 10% tax announced by the US President.

Economy Minister Marcelo Ebrard noted that 85% of Mexican exports to the United States are currently duty-free under the North American Free Trade Agreement. But exports of automobiles and steel products are subject to tariffs because they "rely on another legal principle."

The US President considered that most of the trade agreements that were negotiated under the threat of tariffs are still valid.

He said that fees will be imposed through alternative mechanisms that will compensate for those that were canceled by the Supreme Court, adding, "We will implement all agreements in a different way."

He continued, "Other alternatives than those that were wrongly rejected by the court will now be used."

In turn, Treasury Secretary Scott Besent said in a speech before an economic conference in Dallas, that the alternatives "will lead to approximately similar revenues from tariffs in 2026."

© 2026 AFP

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