President Donald J. Trump announced new tariffs on all imports this week, but markets didn't blink. The duties kick in February 24 at 10% on most goods entering the US, with a bump to 15% threatened soon after. This comes right after the Supreme Court struck down some prior tariff powers. Investors shrugged it off. Asia stocks mostly went up. Safe-haven buys held firm. Gold nudged 1% higher. And the 10-year US Treasury yield barely moved.
Key Takeaways
- New 10% tariffs hit all imports starting February 24, 2026, for 150 days under Section 122 of the Trade Act.
- Markets stayed calm: Asia indexes rose, gold up about 1%, Treasury yields steady.
- Exemptions cover drugs, key minerals, energy, farm goods, and some vehicles.
- President threatened 15% hike and eyed digital taxes from other countries.
Background
Trump's tariff moves build on years of trade fights. Back in his first term, he slapped duties on steel, aluminum, and China goods. Those aimed to protect US jobs and cut trade gaps. Now in 2026, he's back at it. The Supreme Court ruled February 20 that some emergency powers under IEEPA were overreach. That wiped out recent 'reciprocal' and 'fentanyl' tariffs. Revenue from those? Gone for now. Refunds likely over the next year.
But Trump didn't wait. He switched to Section 122 of the 1974 Trade Act. It's for balance-of-payments issues. Temporary. Just 150 days. Proclamation signed fast. Effective midnight February 24, Eastern time. Why? White House says it fixes 'fundamental international payment problems.' Helps American workers, farmers, makers. Trade deals popped up too. India framework February 9. Indonesia agreement February 19. Japan order from last year. Even Nicaragua faces phased hikes.
Markets have seen this before. Remember 2018? Steel tariffs hit. Stocks dipped then bounced. China trade war dragged on. Volatility spiked. But lately? Investors bet on talk over action. Or maybe growth elsewhere offsets. Asia indexes like Nikkei, Hang Seng ticked higher Monday. Europe followed suit in early trade. Wall Street futures flat but firm.
And safe havens. Gold loves uncertainty. It climbed. Up 1% to near record highs. Yen strengthened a bit. US Treasuries? Yields on the 10-year sat around 4.2%. No big selloff. No flight to bonds. Just steady.
This fits a pattern. Trump's first big tariff waves drew headlines. Markets wobbled short-term. Long-term? US economy grew. Jobs held. Inflation ticked up some. Critics said costs passed to buyers. Fans pointed to manufacturing gains. Now, with rates high and growth slowing, eyes watch closer.
Key Details
The tariffs cover almost everything coming in. Flat 10% ad valorem. That's value-based. But holes exist. Smart ones. Exemptions shield key needs.
Exemptions and Targets
No duties on critical minerals. Think lithium, rare earths for batteries. Energy products. Oil, gas, coal if needed here. Fertilizers we can't grow enough of. Farm stuff like beef, tomatoes, oranges. Drugs and ingredients. Electronics components. Passenger cars, some trucks, buses, parts.
Steel and aluminum? Special rules. Only metal content hit. Not the whole product. Free trade zones get watched too. Goods there now face duties on entry.
China gets extra heat. De minimis shipments—those cheap packages under $800—now pay big. Up to 120% or $100 flat last year. Tightened again. Postal goods from there? Hammered.
Threats loom larger. 15% across the board announced February 21. Digital services taxes? Countries like EU spots, Canada, face retaliation. Russia? 500% if new laws pass on oil buys. France alcohol? 200%. Canada dairy, lumber? 250%. Aircraft? 50%.
Economists crunch numbers. Yale Budget Lab says current setup hikes unemployment 0.3 points by year-end. Long-run economy shrinks 0.1%. That's $30 billion a year gone. Metals, vehicles, electronics hurt most. If permanent? Double pain. Apparel jumps too.
Markets ignored it all. Asia higher on tech, exports. Gold safe. Yields steady as Fed eyes cuts maybe. Investors price in no recession yet.
"The temporary import duty will take effect February 24 at 12:01 a.m. eastern standard time." – White House Fact Sheet
And countermeasures brew. Canada eyes dairy hits. EU on DSTs. China drags on maritime gear to November. Trade talks heat up. Congressman Meuser sells Nvidia stock amid tech tariff talks. Broader market links to quantum tech funds betting on US edge.
What This Means
Short-term calm rules. Markets bet tariffs fade after 150 days. Or exemptions blunt pain. Consumers see price tags creep on cars, gadgets, metals. But not yet. Gold buyers win. Hedge funds pile in.
Jobs? Manufacturers cheer protection. Steel mills, auto parts. Imports cost more. US goods compete better. But retailers groan. Walmart, Target pass costs. Inflation watch. Fed already fights that.
Global ripple. Asia exporters sweat. China ships less cheap stuff. India, Indonesia deal in. Russia oil dodges for now. Europe DST fight simmers. France summons US ambassador over other tensions, trade next?
Longer view. Economy adapts. Firms shift suppliers. Vietnam, Mexico gain. USMCA holds Canada, Mexico exempt. Growth slows a touch. Unemployment ticks. But no crash. Investors sit still. Do nothing. Wait for next shoe.
Trade deficit? Target hit. Payments balance. Workers gain use. Farmers too with exemptions. But retaliation stings. Canada lumber war redux. EU wine duties maybe.
Businesses plan. Stock up pre-24th. Diversify chains. NASA rolls back rocket shows supply woes echo here. Tariffs add friction.
Frequently Asked Questions
When do the new Trump tariffs start?
They begin February 24, 2026, at 12:01 a.m. ET. Last 150 days unless extended.
What goods get exemptions from tariffs?
Critical minerals, energy, some farm products like beef and oranges, pharmaceuticals, electronics, and certain vehicles and parts.
Will tariffs raise prices for US buyers?
Yes, on non-exempt imports like metals, vehicles, electrical gear. Expect gradual hikes as costs pass through.
Frequently Asked Questions
When do the new Trump tariffs start?
They begin February 24, 2026, at 12:01 a.m. ET. Last 150 days unless extended.
What goods get exemptions from Trump tariffs?
Critical minerals, energy, some farm products like beef and oranges, pharmaceuticals, electronics, and certain vehicles and parts.
Will Trump tariffs raise prices for US buyers?
Yes, on non-exempt imports like metals, vehicles, electrical gear. Expect gradual hikes as costs pass through.
