The US Customs and Border Protection (CBP) announced a 10 percent tariff increase on all goods not exempted, contrary to President Donald Trump’s initial plan of a 15 percent tariff. The decision follows a US Supreme Court ruling that rejected emergency tariffs as unjustified. Trump had initially proposed a temporary global tariff of 10 percent, intending to raise it to 15 percent later.
In response to the February 20, 2026 Presidential Proclamation, CBP stated that imports not covered by exemptions would face an additional ad valorem rate of 10 percent. The rationale for the lower rate was not provided, leading to confusion about US trade policy. While a White House official hinted at a potential future increase to 15 percent, this information could not be immediately verified by Reuters.
With Trump scheduled to deliver the State of the Union address, experts speculate that more clarity on tariff plans may emerge. Despite the lower than anticipated 10 percent tariff, uncertainties in the trade landscape contributed to a weaker opening for European shares.
The newly imposed tariffs came into effect at midnight, while collection of the previously annulled tariffs was suspended. These tariffs had varied from 10 percent to as high as 50 percent. The process for potential refunds to companies for payments made under the abolished regime remains uncertain.
Under Section 122 law, the president can levy new duties for up to 150 days to address significant balance-of-payments deficits and international payments issues. Trump’s tariff order highlighted a $1.2 trillion annual US goods trade deficit, a 4 percent current account deficit of GDP, and a shift in the US primary income surplus as grounds for the tariff imposition.