WASHINGTON, February 25 — The U.S. global tariff regime officially took effect this week with a 10% levy on imports, following a U.S. Supreme Court decision that invalidated the former broader tariff framework, according to multiple government and industry sources .
The newly imposed duties, anchored in Section 122 of the Trade Act of 1974, mark a significant shift in U.S. trade policy. Although initial plans aimed for a 15% rate, customs authorities confirmed that the tariff will start at 10% while the administration works toward potential increases .
The move has drawn reactions domestically and internationally, with trading partners and export sectors closely monitoring the evolving policy landscape.
Tariffs Take Effect After Supreme Court Ruling
The tariff rollout follows a Supreme Court ruling that struck down an earlier set of broad tariffs that had been imposed using emergency authority, prompting the administration to pivot to alternate legal measures to sustain trade levies .
Under Section 122, the President can impose temporary duties of up to 15% for up to 150 days without congressional approval — a tool now in use as the 10% tariff comes into force on all imports that are not otherwise exempted under specific trade agreements or carve-outs .
The tariffs apply from midnight on Tuesday, marking a fresh round of duties approximately 10% above existing most-favored-nation (MFN) rates on many products. This step adds complexity to a trade policy environment already shaped by earlier tariff announcements and legal setbacks.
Reactions From Trading Partners
International responses have been swift. European Union trade officials described a transition period in economic relations, signaling both concern and cooperation as EU negotiators adjust to the new U.S. tariff stance .
In Latin America, Brazil welcomed exemptions for its aircraft exports, which were returned to a zero tariff rate, a change seen as benefiting key aerospace manufacturers such as Embraer by leveling access to the U.S. market against competitors .
Despite some positive developments for specific sectors, several countries have expressed uncertainty about future tariff hikes, particularly given statements from Washington that the duty could rise toward 15% — a target that remains under internal review before implementation .
Domestic Industry and Policy Responses
Within the United States, business groups and lawmakers have voiced mixed reactions. Some manufacturing sectors argue that clearer rules are needed to ensure predictable trade costs, while export associations have raised concerns about cost implications for international competitiveness.
President Donald Trump has publicly stated his intention to use tariffs to address what the administration frames as imbalances in trade flows, including the large U.S. goods trade deficit. However, economists have contested the underlying rationale that a balance-of-payments crisis exists, noting that the current account deficit and trade deficit are distinct economic indicators .
Industry analysts also point out that the initial 10% rate may dampen some business pushback, but uncertainty over potential future increases continues to weigh on planning and investment decisions.
Market Sentiment and Broader Economic Context
Financial markets have shown signs of volatility amid tariff uncertainty. Safe-haven assets such as gold experienced price movements as investors reassess risk linked to shifting trade policy — a pattern observed in related market coverage this week .
Equity markets displayed a mixed reaction, with some sectors rallying on growth prospects while others retrenched on concerns about potential cost pressures related to import tariffs and retaliatory trade measures.
The tariff development comes alongside other macroeconomic debates, including inflation trajectory and consumer spending, which together shape investors’ views on U.S. economic resilience and global growth prospects.
Outlook and Policy Considerations
Looking ahead, the implementation of the 10% global tariff is expected to remain in place for 150 days unless extended or replaced by updated legislation or international agreements. Trade policy advisors note that Congressional input could influence long-term tariff structures if the executive branch seeks broader authority.
In addition, ongoing discussions with key trading partners could yield concessions or exemptions that affect tariff incidence across specific industries.
For now, the U.S. global tariff represents a renewed emphasis on trade leverage as a tool of economic policy, even as legal frameworks and diplomatic negotiations continue to evolve in response to global market needs and strategic imperatives.