#TrumpAnnouncesNewTariffs

President Donald Trump’s latest tariff announcement has once again sent ripples through global markets and trade circles. Following a Supreme Court decision that limited the use of emergency powers for broad import duties, the administration moved swiftly to deploy an alternative legal pathway. On February 20, 2026, Trump signed a proclamation invoking Section 122 of the Trade Act of 1974, initially setting a 10 percent ad valorem tariff on most imported goods. The following day he raised the rate to 15 percent, describing the adjustment as the maximum allowable under the statute and a necessary step to correct long-standing trade imbalances.

The measure, set to take effect at the beginning of February 24, is temporary by design—limited to 150 days unless Congress acts to extend or modify it. The White House has carved out several exemptions intended to shield critical supply chains and everyday necessities. Among the items spared are certain minerals not produced in sufficient quantities domestically, selected agricultural products such as beef and citrus, pharmaceuticals, specific electronics, passenger vehicles, aerospace components, and books or other informational materials. Goods qualifying under the USMCA from Canada and Mexico largely retain their preferential treatment.

The rapid sequence of events unfolded against a backdrop of heightened economic uncertainty. Financial markets reacted with caution; equity indexes showed modest declines while currency pairs involving the dollar displayed mixed movements. Importers and retailers began recalculating costs almost immediately, with many analysts forecasting upward pressure on consumer prices if the duties remain in place for the full period. Trading partners, meanwhile, are weighing their responses. Some countries that previously faced higher targeted tariffs may experience a relative easing, while others accustomed to lower or zero duties could face a steeper increase.

Trump framed the policy as a continuation of his long-standing approach to trade. In public statements he emphasized protecting American workers and manufacturers, and suggested that additional measures—potentially under Section 301 or other authorities—could follow in the coming months. The timing places the announcement close to his upcoming State of the Union address, ensuring that trade policy will remain a central topic in domestic and international discussions.

For businesses with global operations the next few weeks will be critical. The 150-day window creates a deadline for negotiations, potential congressional intervention, or retaliatory actions from other governments. Whether the tariffs serve as leverage for new trade deals or evolve into a more permanent fixture depends on developments still unfolding. Global supply chains, already tested in recent years, now face another layer of complexity as companies adjust to the shifting landscape.