President Donald Trump plans to slap a 10% tariff on goods from around the world. This comes right after the Supreme Court killed his earlier push using emergency powers. The court said no on February 20, 2026. Trump made the announcement at a quick press event outside the White House. He wants these new global tariffs in place fast, using a different law called Section 122.
Key Takeaways
- Supreme Court ruled IEEPA doesn't let the president impose tariffs, handing Trump a big loss.
- Trump now turns to Section 122 for 10% tariffs on all imports, no emergency needed.
- Importers may get refunds on old tariffs, but that's not settled yet.
- Deals with 19 countries on trade could shift as tariffs change.
Background
The fight over these tariffs started back in 2025. Trump used the International Emergency Economic Powers Act, or IEEPA. That's a law from years ago meant for big crises. He called trade problems an emergency. Importers sued. They said the president can't set taxes like that without Congress. A federal appeals court agreed in August 2025. It called the tariffs too wide open, with no limits on size or time. The Supreme Court took the case. Arguments happened November 5. Yesterday's ruling was clear. Chief Justice John Roberts wrote the main opinion. He said IEEPA lets the president regulate imports. But tariffs? That's Congress's job. They're a type of tax under the Constitution.
Six justices backed the core ruling. That includes Roberts, Sotomayor, Kagan, Gorsuch, Barrett, and Jackson. Three of them went further on big agency power questions. But the main point stuck. No tariffs under IEEPA. Dissenters like Kavanaugh said it creates a mess. Billions in tariffs collected. Who gets money back? Importers passed costs to buyers. Chaos ahead.
This ties into Trump's whole trade push. He's long said other countries cheat on deals. High tariffs force fair play. Before the ruling, his team cut pacts with 19 nations. South Korea pledged $350 billion in US investments. The EU promised $550 billion, mostly in defense and key tech. They lowered their own barriers. Got breaks on US tariffs in return. Now those deals hang in the air. As Supreme Court Blocks Trump’s Emergency Tariffs, But Other Options Remain, the door isn't fully shut.
But tariffs aren't new for Trump. Back in his first term, he hit China hard under Section 301. Steel and aluminum got duties too. Courts mostly let those stand. This time, IEEPA was the hook. Gone now.
Key Details
Trump didn't wait long. Hours after the ruling dropped, he stepped up to mics. No formal order yet. But he laid it out plain.
"We're moving to Section 122 right away. Ten percent on everything coming in. Global. Keeps America first." – President Donald Trump
Section 122 sits in the Trade Act of 1974. It lets the president balance payments. If too much money flows out on imports, hit them with up to 15% duties. No emergency required. Trump picks 10%. Applies everywhere. China. Europe. Canada. Friends and foes alike.
Customs won't stop collecting old tariffs yet. Needs White House orders to change. That could come soon. Importers eye refunds. Learning Resources and V.O.S. Selections led the suits. They want cash back. But courts left that open. No easy fix. Kavanaugh warned it'll be messy. Companies passed costs on. Consumers paid more for toys, wine, gadgets. Refunds might not reach end buyers.
Court Breakdown
Roberts' opinion hit hard. Tariffs raise revenue. They tax importers directly. IEEPA says regulate imports. That's quotas or bans, not taxes. History backs it. Presidents used IEEPA for 50 years. Never tariffs. Congress always spells out tax powers clear. Here? Too vague.
Government fought back. Said regulate covers tariffs. Like adjusting imports. Cited old laws. Court said no. Too big a stretch. No foreign policy pass either. Emergencies don't rewrite rules.
Thomas dissented alone. Said Congress can hand broad powers. But he lost.
Trump's team eyes more tools. Section 301 for unfair practices. Section 232 for security. Keeps pressure on.
Trade hit hard already. Billions flowed in under IEEPA. South shifted. Factories eyed Mexico. Now uncertainty. Midterm elections loom. Voters feel prices. Trump frames it as wins.
As Supreme Court Strikes Down Trump’s Sweeping Tariffs Ruling, his agenda adapts quick.
What This Means
New tariffs mean higher costs fast. Ten percent on all goods. Phones from Asia. Cars from Germany. Clothes from Vietnam. Shops pass it on. Inflation ticks up. Businesses scramble. Some stockpile now. Others rethink suppliers.
Deals with those 19 countries? In flux. Reciprocal cuts might end. South Korea's billions? EU defense cash? Could dry up. Or renegotiate under new rules.
Congress watches close. Republicans back Trump mostly. Democrats cry foul. Say it's tax without vote. Midterms test it. Trump speaks State of the Union February 24. He'll push back there.
Importers push for refunds. Billions at stake. Courts sort later. Customs needs orders to stop old collections. Expect delays.
Global reaction brews. Partners grumble. China laughs maybe. Retaliation possible. Trump's bet: They blink first.
Workers cheer maybe. Steel jobs safe. Factories stay home. But consumers pay. Always do.
Long game. Trump wants Congress to act. Give clear powers. Won't hold breath.
Frequently Asked Questions
Will the new 10% tariffs start right away?
No formal order yet. But Trump said soon. Customs keeps old ones till told otherwise. Expect action in days.
Can importers get refunds on IEEPA tariffs?
Maybe. Court didn't rule on it. Lower courts handle next. Process looks tough. Pass-through to customers complicates.
What other laws can Trump use for tariffs?
Section 122 now. Also 301 for bad trade acts. 232 for national security. Each has limits. Courts watch.
Frequently Asked Questions
Will the new 10% tariffs start right away?
No formal order yet. But Trump said soon. Customs keeps old ones till told otherwise. Expect action in days.
Can importers get refunds on IEEPA tariffs?
Maybe. Court didn’t rule on it. Lower courts handle next. Process looks tough. Pass-through to customers complicates.
What other laws can Trump use for tariffs?
Section 122 now. Also 301 for bad trade acts. 232 for national security. Each has limits. Courts watch.
