U.S. President Donald Trump has signed an executive order imposing a 10% global tariff, effective February 24. This move follows a Supreme Court ruling that found previous tariffs imposed under the 1977 International Emergency Economic Powers Act (IEEPA) were an overreach of presidential power.

• The new levy is applied under Section 122 of the 1974 Trade Act, allowing its imposition for 150 days without congressional approval.
• President Trump argues tariffs are crucial to reduce America’s trade deficit, which recently hit approximately $1.2 trillion.
• Several countries, including the UK, European Union, and India, are now evaluating their trade relationships and agreements with the U.S. in response to this decision.