US Supreme Court Overturns Trump Tariffs, New 15% Levy Announced

Feb 22, 2026

79 min

Feb 22, 2026 23:30

Trump tariffs ruled illegal — why new 15% tax keeps UAE investors watching

## Supreme Court Decision

The US Supreme Court has invalidated a key component of former President Donald Trump's tariff strategy, ruling that he overstepped his authority by imposing broad duties without congressional consent. The decision, delivered by a conservative-majority court, emphasized that the power to levy taxes and tariffs resides with Congress, not the president.

## New Tariff Announcement

In response to the ruling, Trump quickly announced a new 15% global import levy, raising the previous rate from 10%. This new tariff is temporary, limited to 150 days under US law, and excludes certain sectors like pharmaceuticals and goods under the US-Mexico-Canada agreement.

## Global Reactions

The European Union is reviewing the court's decision, highlighting the need for stability in transatlantic trade. Canada welcomed the ruling, noting that it confirms the unjustified nature of the previous tariffs, although specific tariffs on steel and aluminum remain unaffected. The UK plans to collaborate with the US to assess the ruling's implications.

## Market Impact

US stock markets showed a cautious response, with initial losses turning into gains as investors considered the potential for improved global trade conditions. Despite the ruling, economic indicators such as slower growth and rising inflation could limit the Federal Reserve's options for interest rate cuts.

## Investor Considerations

For UAE investors with interests in US markets, the ruling suggests a need for strategic adjustments rather than panic. The focus is on balancing reduced trade barriers with ongoing economic challenges and geopolitical uncertainties. The decision may lead to a recalibration in investment strategies, particularly in sectors like AI and advanced computing.

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