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Trump’s new tariff takes effect at lower than expected rate

4 hours ago
in Business & Economy, International, US News
Trump new tariff 10 percent
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Published: 24 February 2026. The English Chronicle Desk. The English Chronicle Online

US President Donald Trump has implemented a new global import tariff at a rate of 10%, after the Supreme Court blocked many of his sweeping import taxes last week. Hours after the court’s ruling, Trump signed an executive order to impose the levy, which came into effect on 24 February, aiming to address what he described as “fundamental international payments problems” and to rebalance trade relationships in favour of American workers, farmers, and manufacturers.

The new tariff rate is below the 15% previously announced by the president, reflecting a temporary adjustment while the administration considers additional measures. The White House has yet to issue an official directive to raise the rate, creating uncertainty for businesses and global markets. Analysts warn that this fast-changing environment increases the risk of retaliatory measures from trading partners and could heighten the likelihood of a full-scale trade war.

Carsten Brzeski, an economist with ING, said the situation “adds to the chaos and mess,” stressing that the unpredictable tariff landscape mirrors last year’s trade uncertainty. He noted that trading partners may respond aggressively if the United States does not clearly define the scope and duration of its tariffs.

The executive order relies on Section 122 of the 1974 Trade Act, which allows the president to impose tariffs for 150 days without congressional approval. Trump has argued that these tariffs are necessary to reduce America’s trade deficit, which reached a new high last week of approximately $1.2 trillion, up 2.1% compared to 2024. Prior tariffs imposed under the 1977 International Emergency Economic Powers Act (IEEPA) have already generated at least $130 billion in revenue.

The Supreme Court’s 6-3 ruling found that last year’s sweeping tariffs exceeded the president’s authority under IEEPA. Trump criticised the decision as “ridiculous, poorly written, and extraordinarily anti-American,” while threatening to impose higher tariffs on countries that “play games” with trade deals.

Global responses have been cautious. The UK indicated that reciprocal action is “not off the table” if trade agreements are violated, though officials stressed that no one desires a trade war. The European Union suspended ratification of a summer trade deal and requested clarity from the US, with European Parliament delegate Brando Benifei urging coordinated responses to protect mutual trade interests. Meanwhile, India deferred previously scheduled talks over the uncertain tariff environment.

The unfolding situation highlights the fragility of global trade negotiations amid executive actions, legal challenges, and market reactions. Companies reliant on imports face uncertainty regarding duties and compliance, while governments and international institutions continue to assess the broader economic implications of US tariffs.

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