TrumpÕs 10% levy takes effect

Donald TrumpÕs new 10% global tariffs have kicked off a
White House effort to preserve the presidentÕs trade agenda after
the U.S. Supreme Court rejected his original sweeping duties

Feb 20: Supreme Court rules tariffs imposed by
Trump under IEEPA legislation are illegal

Within hours, Trump authorises 10% import tax under
Section 122 of 1974 Trade Act Š allowing him to impose
charge for 150 days without congressional approval

Feb 21: Trump threatens to raise number to 15%,
but does not officially issue directive to increase rate by
Feb 24 at 12:01am EST, when 10% levy takes effect

AVERAGE EFFECTIVE U.S. TARIFF RATE*

2024 tariffs
Section 232 Š unaffected by Supreme Court ruling
International Emergency Economic Powers Act (IEEPA) Ź 
Section 122

15
10
5
0

2.4%
13.6%
10.2%
12%

Before Trump
takes office
(2024)

Before Supreme
Court ruling
(as of Feb 19, 2026)

IEEPA replaced
by Section 122
(10% levy)

IEEPA replaced
by Section 122
(15% levy)

*Uses 2024 trade composition. Based on White House factsheet, Section 122 estimate
assumes exemptions to reciprocal duties, for aircraft products, and for USMCA-compliant
goods are maintained

Source: Bloomberg
Picture: Getty Images
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