United States: Current global trade developments

The 47th US president is making trade policy a priority during his term in office. But on February 20, 2026, the US Supreme Court ruled that the President is not entitled to impose tariffs on the basis of the International Emergency Economic Powers Act (IEEPA). The ruling thus restricts the president's emergency powers in trade policy.

The decision removed the legal basis for drug trafficking tariffs and reciprocal tariffs. The Executive Order Ending Certain Tariff Actions was therefore issued on the same day. However, tariffs on specific products such as steel, aluminum, or cars, which are based on the Trade Expansion Act of 1962, remain in place.

An administrative procedure must be made available to refund the US duties levied on this basis since April 2025. In the publication CSMS # 68315804, the US customs authority provides information on the procedure. While it continues to process refunds for imports that have not yet been finalized as well as for successful plaintiffs, the US Department of Justice (DOJ) disputes the need to make blanket refunds to all importers. This would primarily affect smaller importers who have not participated in the litigation to date and whose imports have already been assessed.

Based on a different legal basis, namely Section 122 of the Trade Act of 1974, the US President also responded with a temporary global special tariff of 10%. This came into force for 150 days on February 24, 2026, in accordance with the proclamation Imposing a Temporary Import Surcharge to Address Fundamental International Payments Problems. He also informed about a possible increase to 15% on Truth Social, but has not yet implemented it.

On May 7, 2026, the US Court of International Trade (CIT) also found – in the case The State of Oregon v. United States – that this special tariff exceeded presidential powers. However, it only issued a preliminary injunction for the specific plaintiffs. A universal injunction for all importers was ruled out. However, the special tariff expires on July 15 and can then no longer be extended by the President alone, but must be extended by Congress. Latest then, there will be renewed developments in the tariff policy of the US.

On June 2, 2026, a report on Section 301 of the Trade Act of 1974 was also released. It recommends that countries with a complete or partial ban on goods involving forced labor be subject to a flat tariff of 10 percent, and all others to a tariff of 12.5 percent. A decision on this is still pending.

Following the Supreme Court's ruling, reciprocal tariffs were also abolished for the EU. This means that the new temporary special duty of 10% and the global duties not based on the IEEPA currently apply to the EU. In particular, these are the Section 232 measures for steel and aluminum products, copper, wood and lumber, semiconductors, trucks, and buses.

Exception: A customs duty cap has been in effect since August 1, 2025, for motor vehicles and motor vehicle parts originating in the European Union. The total tariff burden resulting from the regular MFN tariff rate and the additional Section 232 tariff may not exceed 15%. However, the possibility of the US increasing tariffs has been raised time and again.

On May 20, 2026, the EU Council and Parliament reached an agreement on the elimination of the remaining import duties on industrial goods from the US and the extension of the tariff suspension for imports of lobster. This is an important step towards implementing the Joint Statement between the EU and the US negotiated in Turnberry, Scotland. The EU now wants to conclude this agreement by the end of 2029. Safeguard mechanisms are also to take effect. 

On June 16, 2026, the European Parliament voted in favor of the deal, and the Council of the European Union is expected to follow suit. This clears the way for the agreement to take effect by the US Independence Day on July 4, 2026.

Before the reciprocal tariffs were deemed illegal by the Supreme Court under the International Emergency Economic Powers Act (IEEPA), the US used them as a political tool to enter into negotiations with countries around the world. The decisive factor was the Executive Order of April 2, 2025.

Individual tariff rates were then set with individual countries. The list of goods was also modified several times. Aircraft and aircraft parts, generic medicines, and natural resources that are not available in the US were exempted from the tariffs.

Tariffs now apply to all countries on the basis of Section 122 of the Trade Act. This measure is expressly limited in time and applies for a period of 150 days, i.e. probably until July 24, 2026, unless it is amended or extended by Congress before then.

The relationship with China is of particular importance. Tariffs here have fluctuated by over 100% in some cases, but the global 10% now applies here too. The Section 301 tariffs against China, on the other hand, remain in force indefinitely.

• The Proclamation of April 2, 2026, is intended to impose a 100% ad valorem duty on (patented) pharmaceutical products and their ingredients from July 31, 2026. The additional duties under Section 232 Trade Expansion Act are to come into force in stages: 
• For certain large companies listed by name in Annex III of the proclamation, the duties will come into force on July 31, 2026, and for all other companies on September 29, 2026. 
• Generics, biosimilars and their ingredients are currently completely exempt from these duties. This also applies to specialized pharmaceutical products – the list can be viewed in Annex IV.
• Pharmaceutical products from the European Union, Japan, the Republic of Korea, Switzerland, and Liechtenstein are only subject to a duty rate of 15%. For the United Kingdom, only 10% applies with the possibility of a further reduction.

You can search for US tariffs affecting your goods using the Harmonized Tariff Schedule, a database maintained by the US International Trade Commission that catalogs the tariffs imposed by the United States. It contains the US duty rates and special classification provisions (chapter 98) or temporary regulations (chapter 99). Start by entering the international six-digit code of your merchandise here, or use the keyword search.

Alternatively, you can use the EU Commission's database Access2Markets. The current duty rates of all countries are made available there. From the main page, enter the six-digit HS code, your country of origin, and the United States under the country of destination.