Trump Tariffs Drive Mixed Global Market Reaction

Trump tariffs prompted mixed global market moves after the U.S. Supreme Court on Feb. 20, 2026, ruled that the International Emergency Economic Powers Act (IEEPA) did not authorize prior import levies. The president responded by imposing new Section 122 duties effective Feb. 24, 2026, sparking divergent equity responses.

Supreme Court Ruling and Tariff Reissuance

The Supreme Court found that IEEPA did not authorize presidential tariffs, invalidating all tariffs issued under that statute and leaving unresolved whether importers will receive refunds. This ruling followed lower court decisions that enjoined tariffs imposed last April on national-security grounds as executive overreach.

In response, the administration issued an executive order implementing Section 122 tariffs, setting a 10% ad valorem levy on imports effective at 12:01 a.m. ET on Feb. 24, 2026, scheduled to run through July 24, 2026. On Feb. 21, the president indicated plans to raise the global tariff rate to 15%. A tariff-tracker update on Feb. 22 confirmed the Section 122 implementation and recorded the president’s statement seeking the higher rate.

Divergent Global Market Reactions

Asian equities rose as investors digested the legal reset, with benchmarks in South Korea and Taiwan reaching record highs. U.S. stocks opened mostly flat, with broader indexes little changed despite gains in some S&P 500 components. European markets were expected to open lower as traders weighed the court ruling and the prospect of higher import levies.

These regional differences reflected investor uncertainty about how the legal ruling and the administration’s tariff actions will affect trade costs and corporate exposure to imports.