WASHINGTON, D.C. — Global trading partners on Friday, February 20, 2026, expressed cautious relief after the U.S. Supreme Court struck down President Donald Trump’s sweeping global tariffs. However, the victory was short-lived as Trump immediately vowed to impose a new 10% general tariff on all imports using a different executive authority.
The conservative-majority Supreme Court ruled that Trump was not authorized by the International Emergency Economic Powers Act (IEEPA) to impose the broad levies. Crucially, the ruling does not affect sector-specific duties already in place for steel, aluminum, and other goods.
Global Reactions:
- Canada: International Trade Minister Dominic LeBlanc welcomed the ruling, calling the original levies “unjustified.” However, the Canadian Chamber of Commerce warned that the decision is not a “reset” and that Ottawa should prepare for “blunter mechanisms” of trade pressure.
- European Union: EU trade spokesperson Olof Gill stated the 27-nation bloc is analyzing the ruling and seeking “clarity, stability, and predictability” in future trade steps.
- Germany: The German government and the industry group BDI viewed the ruling as proof that the “separation of powers in the USA is still going strong.”
- United Kingdom: London expects its “privileged trading position” to continue following a May 2025 deal that reduced car export levies and lifted steel tariffs.
- Mexico: Economy Minister Marcelo Ebrard said the government is currently studying the potential impact of the new 10% general tariff Trump announced in response to the court’s verdict.
The Path Forward
While the court’s decision limits the use of the IEEPA for broad trade measures, it does not strip the President of all tariff powers. Trump’s immediate pledge to implement a 10% global tariff suggests a continued era of trade volatility. U.S. stocks reportedly rose following the court ruling, but analysts warn of further disruption if the new general tariff is successfully enacted.
