A high-stakes constitutional showdown between the executive branch and judicial branch of the United States federal government intensified further on 21 February 2026 after Donald Trump raised global tariffs from 10 percent to 15 percent.
Note that the U.S. president announced that he would be setting the global tariff at 10 percent after the Supreme Court ruled in a 6-3 decision that the second Trump administration overstepped its authority by using the International Emergency Economic Powers Act of 1977 to impose sweeping global tariffs without receiving the required prior approval from Congress.
Specifically, in response to the high court decision, the White House sought to bypass the ruling by utilizing a different federal trade statute.
Trump invoked Section 122 of the Trade Act of 1974 to impose import surcharges to address balance-of-payments deficits. The supposed 10 percent almost-across-the-board global tariff was planned to take effect on February 24.
However, in stretching the use of the Trade Act, he is now imposing up to 15 percent tariffs to address significant balance-of-payments deficits for 150 days. The new order is still set to take effect at 12:01 a.m. Eastern Time on February 24.
However, while the new tariffs apply globally, the administration confirmed that certain critical minerals, pharmaceuticals, and other goods or products compliant with the United States-Mexico-Canada Agreement from Canada and Mexico remain exempt.
Existing industry-specific duties on steel, aluminum, and lumber will also remain in place, as they fall under different laws. However, the broader escalation has sparked immediate concern among domestic retailers who fear another massive wave of rising consumer prices.
The National Retail Federation and the U.S. Chamber of Commerce are now demanding the immediate return of 133 billion U.S. dollars. Trump has vowed to fight these refund requests. He maintains that the money belongs to the United States Department of the Treasury, despite studies showing domestic businesses have largely borne the heavy financial costs.