The Supreme Court has made a significant ruling. The Court struck down President Trump’s broad tariffs. These tariffs were imposed under the International Emergency Economic Powers Act (IEEPA). The Court’s decision came on February 20, 2026. This ruling limits presidential power on tariffs. In response, President Trump announced new tariffs. He will impose a 10% global tariff. This action uses Section 122 of the Trade Act of 1974. This law allows for temporary import duties. The new tariffs will last for 150 days. This is a new development in trade policy.
Supreme Court Strikes Down Tariffs
The Supreme Court ruled the tariffs illegal. The Court stated IEEPA does not grant this power. This law was used for national emergencies. The majority found this exceeded presidential authority. The ruling stated tariffs are a congressional power. Chief Justice John Roberts wrote the opinion. He noted IEEPA contains no reference to tariffs. No president had used IEEPA for tariffs before. The decision was 6-3. The Court did not order refunds for collected tariffs. This decision affects billions in collected duties. It could create uncertainty for trade agreements. This is a landmark ruling on presidential power. It is a blow to Trump’s economic agenda.
Trump Reinstates Tariffs Under New Law
President Trump reacted swiftly. He called the ruling justices “fools”. He announced new tariffs immediately. The new tariffs are 10% globally. They are imposed under Section 122 of the Trade Act of 1974. This law addresses balance-of-payments problems. It allows temporary import surcharges. The maximum surcharge is 15%. These tariffs can last up to 150 days. Congress must approve any extension. This authority has never been used before. Trump signed an executive order for these new tariffs.
Legal Basis and Justification for New Tariffs
Section 122 provides a different legal path. It allows tariffs for “fundamental international payment problems”. This includes large balance-of-payments deficits. It also covers currency depreciation. The White House cited a $26 trillion net international investment position. This was 89% of U.S. GDP at the end of 2024. Trump stated the U.S. faces “large and serious balance-of-payments deficits”. Treasury Secretary Scott Bessent supports the move. He stated tariff revenue would remain virtually unchanged for 2026. However, the decision may reduce Trump’s negotiating leverage. The new tariffs are set to take effect February 24.
Exemptions and Future Considerations
Some goods remain exempt from the new tariffs. These include critical minerals and pharmaceuticals. Certain agricultural products also get exemptions. Passenger vehicles and parts are also listed. These exemptions address domestic demand needs. The administration is also using Section 301. This section targets unfair trade practices. It allows for investigations and new tariffs. These actions aim to maintain trade pressure. The use of Section 122 is temporary. Its duration depends on Congressional approval. This is a significant shift in U.S. trade policy. It highlights ongoing efforts to influence global trade. This news is trending globally.
This represents the latest development in ongoing trade news. The administration is exploring all options. The future of these tariffs remains a key focus.
