USA: Supreme Court Strikes Down IEEPA Tariffs; Trump Announces New 15% Global Baseline Rate
On February 20, 2026, the US Supreme Court struck down most of Donald Trump’s tariffs, ruling that the President’s use of the International Emergency Economic Powers Act (IEEPA) to bypass Congressional authority was unlawful. The decision affects a wide range of levies imposed last year on nearly all US trading partners.
The ruling, however, did not mark the end of Trump’s push for tariffs. Shortly after the decision was announced, he issued a presidential proclamation invoking section 122 of the Trade Act of 1974 to impose, as of February 24, 2026, a 10% temporary global import surcharge—essentially a worldwide baseline tariff—for 150 days unless extended by Congress. Less than 24 hours later, Trump announced on social media his intention to raise the worldwide tariff to 15%, through no official proclamation or executive order has yet followed.
The court decision also casts uncertainty over recent bilateral trade agreements, as the IEEPA tariffs had been a key element of leverage wielded by the US during negotiations. Trump’s latest tariff actions add a further layer of unpredictability, since the announced global baseline rate of 15% equals or exceeds the tariff ceilings established in various bilateral deals. As reported by Reuters, Trump has warned that he could retaliate with higher duties against any countries that try to back away from their recently negotiated trade deals with the US.
As noted by the New York Times, the US Treasury has collected roughly US$240 billion in tariff revenue since April 2, 2025, when Trump unveiled the first and largest round of IEEPA-based tariffs. At the time of this report, it was unclear how or whether importers could seek refunds. As noted by SCOTUSblog, a news site dedicated to coverage of the US Supreme Court, the ruling “does not set out a refund mechanism, does not order restitution, and does not address the administrative processes by which duties already paid might be recovered,” leaving the mechanics of potential refunds to be sorted out by future legal proceedings.
EU: Legislative Work on EU-US Trade Deal on Hold Following US Supreme Court Ruling
Legislative work in the European Parliament on two files linked to the EU-US trade deal has been put on hold following the US Supreme Court decision limiting the use of the International Emergency Economic Powers Act (IEEPA), a key legal instrument underpinning the US side of the agreement. In a statement, Bernd Lange, chair of the Parliament’s International Trade Committee, said the ruling creates significant uncertainty and undermines the stability the deal aimed to provide. He noted that Trump’s proposed alternative to the IEEPA tariffs would apply across all exporting countries and, when added to MFN rates, could push the total tariff rate on EU exports above the 15% ceiling set out in the agreement. As a result, scheduled Committee votes have been cancelled “until clarity, stability and legal certainty in EU-US trade relations are re-established.”
The European Commission also issued a statement asking the US government to provide full clarity on its next steps, stressing that “a deal is a deal” and urging Washington to honor the commitments in the August 2025 EU-US Joint Statement.
India: Trade Talks With US on Hold Amid Tariff Uncertainty
Following the US Supreme Court’s February 20 ruling invalidating IEEPA-based tariffs and President Trump’s subsequent announcement of a 15% global baseline tariff, India has postponed planned trade negotiations with the United States. According to Business Standard, a scheduled Indian trade delegation visit to Washington has been delayed in order to allow time to assess the implications of the new tariff situation.
China: Zero-Tariff Treatment for 53 African Countries
As of May 1, 2026, China will grant zero-tariff treatment for goods imported from the 53 African countries with which it maintains diplomatic relations, as reported by Chinese state media on February 14. The report further stated that China will continue to advance negotiations towards economic partnership agreements and further expand market access for African products exported to China by upgrading its “green channel”—a mechanism designed to speed up customs clearance and administrative procedures for certain goods—as well as other facilitation measures.
China: Import VAT Reduced for Walnut Oil
On February 2, 2026, the General Administration of Customs of China (GACC) reduced import VAT on 16 agricultural products, including walnut oil, from 13% to 9%. For specific products subject to the 9% import VAT, new 10-digit tariff lines derived from existing 8-digit Harmonized System (HS) codes were introduced, effective immediately. Importers are advised to use the updated tariff lines when importing products covered by the GACC announcement. For more information, see this recent USDA GAIN Report.
USA: Senate Bill Seeks to End “First Sale” Valuation of Imports
A new bipartisan bill in the US Senate, the Last Sale Valuation Act, seeks to end the long-standing “first sale” rule for customs valuation, a method that allows importers to pay duties based on the factory or first sale price rather than the higher middleman price. Introduced on February 11, 2026, by Senators Bill Cassidy (R-LA) and Sheldon Whitehouse (D-RI), the legislation would require importers to use the last sale invoice for duty calculations, potentially increasing costs for businesses engaged in multi-tier transactions. The bill has been referred to the Senate Finance Committee for consideration.