After the US tariff ruling: Applicable tariff rates and reactions

02/25/2026
Reading time 3 Minutes

Following the ruling by the US Supreme Court, all tariffs imposed under the International Emergency Economic Powers Act (IEEPA) were lifted this week. Now the US government and the European Union are responding.

On February 20, 2026, the Supreme Court of the United States ruled that President Trump did not have the authority to impose tariffs under the International Emergency Economic Powers Act (IEEPA). As a result, these tariffs have been suspended with immediate effect.

While the Supreme Court ruling prevents the US President from imposing tariffs under the emergency powers law, it does not generally prohibit him from levying import duties on other legal grounds.

Here are the reactions of the US administration and the European Union to the Supreme Court decision:

US response: President Imposes new tariffs via executive order

On the day of the Supreme Court ruling, the US President signed an Executive Order introducing a 10 percent additional tariff. Shortly thereafter, he announced on social media his intention to raise the additional tariff from 10 to 15 percent. However, a legally binding Executive Order on this matter has not yet been issued.

The additional tariff applies to nearly all imports and is based on Section 122 of the Trade Act of 1974. This provision allows the imposition of additional tariffs for a maximum of 150 days. They are set to take effect from February 24, 2026, at 00:01 EST. The import duties are justified by a “national emergency” due to the balance-of-payments deficit.

These import duties – and exceptions – are now in effect

The additional tariff applies on top of the existing duty rates. That is, the import duties are composed as follows:

Icon image — [Section 122 – (new additional 10 % tariff) | Section 301/232 – (e.g., 25 % on steel) | Base rate/MFN – (e.g., 2.5 %)]

Composition of US import duties, as of February 25, 2026, 10:00 AM (illustration: Baker Tilly)

Generally, the additional tariff applies to all imports into the US However, the following geographic and sector-specific exemptions apply:

Goods compliant with USMCA from Canada and Mexico
Goods listed in Annex II, i.e., selective items from the following areas:
- Food security (beef, coffee, spices, tropical fruits)
- Health security (antibiotics, vaccines, insulin, vitamins)
- Raw materials for industrial processing (critical minerals, graphite, copper, and rare earths)
- High technology (civil aircraft parts, semiconductor machinery)

Important: The exemptions are determined according to the US tariff codes listed in Annex II. Only goods classified under these codes according to US import classification rules are eligible.

EU Response: Parliament halts Trade Agreement with the United States

Since Friday, there had been voices within the EU viewing last year’s tariff deal with the US as “collapsed.” On Monday, the EU’s position became clearer after the European Parliament did not vote on the removal of EU tariffs on US industrial products but instead paused the procedure.

From the EU’s perspective, the US tariff position must first be clarified, meaning the details of future US tariff policy need to be known in order to establish a common EU stance. Planning certainty for EU companies was of great importance in this context, as government spokesperson Stefan Kornelius emphasized.

How should companies handle the current situation?

We recommend that companies with US business closely monitor further developments. Additionally, Annex II highlights once again the importance of correctly classifying products under the importing country’s tariff schedule.

Do you have questions or need support with global customs law? Feel free to contact us! Together with our Baker Tilly US Customs team, we can assist you with EU and US customs regulations, including the proper classification of your products.