Trump’s new 10% tariffs order: What’s changed for countries after SCOTUS verdict, exemptions, trade deals & more

In a major blow to President Donald Trump’s trade policy, the Supreme Court of the United States of America (SCOTUS) on 20 February struck down his global tariffs imposed under the International Emergency Economic Powers Act (IEEPA) of 1977.

The apex court held 6-3 that Trump exceeded his legal authority by using IEEPA, which is a national emergency law, and delivered his biggest legal setback since returning to the White House.

Why is the SCOTUS judgment on Trump tariffs significant?

Dubbed as “among the most significant in American history”, the judgment has also opened a path for refund claims on over $133 billion collected in tariffs — with economists at the Penn-Wharton Budget Model (PWBM) pegging claims at over $175 billion.

Further, this setback for Trump, comes ahead of the US mid-term elections set for November 2026 amid increasing dissatisfaction among the public over rising prices and immigration policies that have led to mass protests across the country.

How has Donald Trump reacted to SCOTUS order on tariffs?

Meanwhile, denouncing the judgment as “terrible, deeply disappointing, and a disgrace” among other things, Trump signed an executive order on 20 February, imposing a 10% global tariff under Section 122 of the Trade Act of 1974.

In a fact sheet, the White House stated that Trump’s 10% ad valorem import duty will be applicable for a period of 150 days, with effect from 24 February at 12.01 am eastern standard time (EST). It also includes goods that were loaded onto a vessel bound for the US before 12.01 am EST on 24 February, or withdrawn from warehouse for consumption, before 12.01 am EST on 28 February 2026.

Notably, Section 122 allows for a temporary import surcharge (up to 15%) for 150 days to address balance-of-payments deficits. However, a Bloomberg report noted that any further extensions require Congressional approval.

Executive orders amended due to SCOTUS verdict — at a glance

The following executive orders signed by Trump “shall no longer be in effect and, as soon as practicable, shall no longer be collected”, the White House said.

The ruling affected a broad range of duties imposed under IEEPA, including: a 10% baseline tariff on nearly all US trading partners; additional tariffs of 10%, 25% and 35% on goods from China, Mexico and Canada; 25% tariff on countries importing oil from Venezuela; 25% duty on India for importing Russian oil; 40% tariff on certain Brazilian products.

• Executive Order 14193 of February 1, 2025 (Imposing Duties To Address the Flow of Illicit Drugs Across Our Northern Border);
• Executive Order 14194 of February 1, 2025 (Imposing Duties To Address the Situation at Our Southern Border);
• Executive Order 14195 of February 1, 2025 (Imposing Duties To Address the Synthetic Opioid Supply Chain in the People’s Republic of China);
• Executive Order 14245 of March 24, 2025 (Imposing Tariffs on Countries Importing Venezuelan Oil);
• Executive Order 14257 of April 2, 2025 (Regulating Imports With a Reciprocal Tariff To Rectify Trade Practices That Contribute to Large and Persistent Annual United States Goods Trade Deficits);
• Executive Order 14323 of July 30, 2025 (Addressing Threats to the United States by the Government of Brazil);
• Executive Order 14329 of August 6, 2025 (Addressing Threats to the United States by the Government of the Russian Federation);
• Executive Order 14380 of January 29, 2026 (Addressing Threats to the United States by the Government of Cuba);
• Executive Order 14382 of February 6, 2026 (Addressing Threats to the United States by the Government of Iran).

Notably, duties imposed under section 232 of the Trade Expansion Act of 1962 (National Security); and section 301 of the Trade Act of 1974 (Unfair Trade), remain unchanged.

What are the items exempted from 10% tariffs?

According to the fact sheet, some goods “will not be subject to the temporary import duty because of the needs of the US economy or to address the fundamental international payments problems facing the US”. Thus, items excluded are:

• Certain critical minerals,
• Metals used in currency and bullion,
• Energy, and energy products,
• Natural resources and fertilizers that cannot be grown, mined, or otherwise produced in the US, or
• Natural resources grown, mined, or otherwise produced in sufficient quantities to meet domestic demand,
• Certain agricultural products, including beef, tomatoes, and oranges,
• Pharmaceuticals and pharmaceutical ingredients,
• Certain electronics,
• Passenger vehicles, certain light trucks, certain medium and heavy-duty vehicles, buses, and certain parts of passenger vehicles, light trucks, heavy-duty vehicles, and buses,
• Certain aerospace products,
• Informational materials (eg, books), donations, and accompanied baggage.
• All articles and parts of articles that currently are or later become subject to section 232 actions,
• USMCA compliant goods of Canada and Mexico; and
• Textiles and apparel articles that enter duty-free as a good of Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, or Nicaragua under the Dominican Republic-Central America Free Trade Agreement.

What additional tariffs besides the base 10% continue?

According to the White House, Trump, in a separate executive order, has retained the “suspension of duty-free de minimis treatment for low-value shipments, including goods shipped through the international postal system, which will also be subject to the temporary import duty imposed under section 122”.

Further, the Office of the United States Trade Representative has been directed to use its section 301 authority to investigate certain unreasonable and discriminatory acts, policies, and practices that burden or restrict US commerce.

What about trading partners? Those how have those deals signed?

The fact sheet said that Trump’s trade policy has “brought the world to the negotiating table on our (the US’) terms” and that trading partners, comprising over half the global GDP, “have agreed to historic trade and investment deals”.

The US will “continue to honor its legally binding agreements on reciprocal trade” i.e. signed deals, according to the White House. Which added that the US, “expects the same commitment from its trading partners”.

Further, answering questions at the White House following the SCOTUS order, Trump said there is “no change” in the India-US trade deal and that the agreement is “still on”, according to a PTI report.

CNBC reported that a White House official confirmed that all countries with existing trade agreements with the US would drop down to the 10% tariff rate, in line with the newest executive order. This includes Vietnam (earlier 20%), India (18%), the European Union, Japan, Liechtenstein, Switzerland, and South Korea (15% each), and the UK (remains at 10%).

Notably, aluminum and steel exports continue to be subject to separate sector-specific tariffs under a separate statutory authority.