In a significant escalation of trade policies, U.S. President Donald Trump signed an executive order imposing a 10% tariff on all imports worldwide. This decision was made public on the 20th, via a post on his social media platform Truth Social, where he claimed the tariffs would be effective almost immediately. This move came promptly after the U.S. Supreme Court ruled against Trump's earlier tariff measures, concluding that his actions under the International Emergency Economic Powers Act (IEEPA) exceeded presidential authority.

Following the Supreme Court's ruling, which was decided with a 6-3 vote, Trump expressed his discontent and contested the decision, suggesting alternative legal frameworks under the Trade Expansion Act and others to justify his tariffs. The newly imposed global tariff is rooted in Trade Law Section 122, which allows the president to temporarily impose tariffs up to 15% on imports for remedying severe international trade imbalances for a maximum of 150 days without congressional approval. However, extending these tariffs beyond 150 days would require legislative support, indicating a potential legal and political struggle ahead.

The implications of this new tariff policy could have far-reaching effects, particularly since the tariffs will apply universally, even to allied nations, potentially straining international relations and affecting the global economy. Although the tariffs are meant to address trade deficits, they may also usher in a period of extended uncertainty in trade, as various legal processes under Sections 232 and 301 are likely to prolong discussions and negotiations among stakeholders and Congress, thus impacting the economic landscape for longer than previously anticipated.