From Product Exemptions To De-Minimis Changes: All You Need to Know About Trump’s New 10% Global Tariffs

New Delhi: President Donald J. Trump has unveiled a sweeping new tariff policy that will affect imports from around the world, marking one of the most significant changes to U.S. trade policy in years. The measures including a 10% global import duty, exemptions for key products, and the end of long-standing duty-free rules for low-value packages - are aimed at addressing what the administration calls “fundamental international payment problems” and shoring up the U.S. economy.

Trump’s announcement came after the Supreme Court on Feb. 20, 2026, ruled that his earlier program of sweeping reciprocal tariffs - imposed under a broad emergency economic authority - was unconstitutional. In a 6-3 decision, the justices held that the president lacked the authority to impose broad import taxes using the International Emergency Economic Powers Act (IEEPA), a law Trump had cited to justify his tariffs on virtually all U.S. trading partners. The court emphasized that the Constitution grants exclusive taxing and tariff powers to Congress, not the executive branch.

Why the Tariffs Were Announced

According to a White House fact sheet, the United States is facing deep and persistent imbalances in its international economic accounts. Officials point to a massive goods trade deficit - roughly USD 1.2 trillion - and a current account deficit of about 4% of GDP, the highest in years, as evidence that the U.S. is importing far more than it earns from exports and investment abroad.

Despite the legal rebuke, Trump made clear he is refusing to retreat from his trade offensive. In a televised press conference from the White House briefing room, he said he would sign a new order under Section 122 of the Trade Act of 1974, a far narrower legal authority - to impose a flat 10 % tariff on all imports over and above existing duties, effective within days.

“This will be over and above our normal tariffs already being charged,” Trump told reporters, framing the new tariff as an extension of his broader economic strategy aimed at “protecting American workers and fair competition.” He said the tariff would remain in place for about 150 days, the maximum period allowed under Section 122, during which the administration will pursue additional investigations and trade actions under other statutory provisions.

What Has Been Announced - the 10% Global Duty

Under the new policy, a 10 % ad valorem tariff (a tax equal to 10 % of the value of most imported goods) will take effect at 12:01 a.m. on February 24, 2026. The tariff will remain in place for 150 days unless Congress intervenes to extend or modify the law. This duty is in addition to existing customs duties that already apply to many products.

The White House says this temporary surcharge is a short-term measure designed to address ongoing imbalances in the U.S. economy while longer-term trade negotiations and enforcement actions continue.

Products Are Exempted from the Tariff

Not all imports will be hit by the 10 % duty. The White House list of exemptions is broad and is meant to reduce economic disruption and keep essential supply chains intact. Products exempted from the tariffs include:

• Critical raw materials and strategic goods.
• Certain critical minerals and metals used in currency and bullion.
• Energy products and natural resources such as oil, gas, and fertilizers that cannot be produced in sufficient quantities domestically.
• Agricultural goods like beef, tomatoes, and oranges.
• Pharmaceutical drugs and pharmaceutical ingredients. 
• Passenger vehicles, light trucks, medium- and heavy-duty trucks, buses, and many parts of those vehicles.

Other exemptions are on informational materials like books, accompanied baggage, and donations. Any goods already subject to strategic national security tariffs (Section 232 tariffs).

Imports that are duty-free under existing trade agreements - notably USMCA (United States-Mexico-Canada Agreement) goods from Canada and Mexico, and certain textiles and apparel from Central American countries under the Dominican Republic-Central America Free Trade Agreement.

What Happened to the Duty-Free De Minimis Rule

One of the most significant changes in U.S. trade policy under Trump is the end of the so-called de minimis duty-free exemption, which historically allowed low-value shipments (typically under USD 800) to enter the U.S. without tariffs or extensive customs paperwork.

Under a separate executive order, the administration has continued the suspension of duty-free de minimis treatment for all countries, meaning that virtually all imports - even small parcels will be subject to applicable duties, taxes, fees, and charges.

Previously, the de minimis rule had allowed everyday e-commerce packages to enter duty-free and simplified clearance for small sellers and consumers. Its elimination affects the e-commerce platforms and international sellers, who now must calculate and collect duties even on tiny packages. Consumers, can expect higher prices or added duties on affordable online purchases. Similarly shipping companies and logistics providers, now must handle increased customs documentation and compliance.

What This Means for Global Trade

The Trump administration says these tariffs will help American workers by encouraging production at home, creating jobs, and reducing dependence on foreign imports. Officials also claim they strengthen U.S. leverage in future trade negotiations.

Trump’s pivot to these alternative statutes reflects an effort to keep tariff pressure alive despite legal hurdles. While Section 122 offers speed, it is temporary; Sections 301 and 232 require investigations that could stretch into months.

The new approach signals that the U.S. is likely to maintain assertive trade measures, balancing temporary sweeping duties with more targeted investigations into specific unfair trade practices and national security threats.

President Trump’s new global tariffs, a 10 % temporary import duty, broad product exemptions, and the end of long-standing duty-free de minimis treatment - represent one of the biggest shifts in U.S. trade policy in years. Designed to counterbalance long-term trade deficits and “fundamental international payment problems,” the policy will have far-reaching consequences for global trade, U.S. industries, consumers, and the future of tariff law.

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