Fri, 20 Feb 2026

Fri, 20 Feb 2026 Trump tariffs ripped up global trade order. What now?

If you think the Supreme Court ruling heralds a return to pre-Trump business as usual - think again.

* The Supreme Court's ruling that President Trump cannot use emergency powers to invoke reciprocal and country-specific tariffs has derailed his existing trade strategy.
* However, this only invalidates some of the additional tariffs ordered by Trump since taking office, not all of them.
* The average tariff rate remains above 6% due to tariffs imposed under different guises.
* Importers may not see much change from current tariff levels, as they have adapted their supply chains or absorbed higher costs themselves.
* Trump can explore other legal routes to replicate the IEEPA tariffs, but these are more complex and lengthy.
* The ruling creates uncertainty for American importers, particularly smaller ones with less agile supply chains, and for exporting businesses worldwide.
* US trading partners may see this as an opportunity to pivot and strengthen alternate trading relationships, driving previously close allies away from the US.
* There is also uncertainty over how agreements struck for countries such as Japan will evolve in response to the ruling.
* The financial markets must grapple with yet another bout of uncertainty caused by Trump's trade policy.
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