$175B at Stake: Supreme Court Halts IEEPA Tariffs, 10% Tariffs Enacted

crypthub

about 3 hours ago

Supreme Court Ruling on Tariffs

The U.S. Supreme Court ruled in 2026 that President Trump exceeded his authority by imposing tariffs under the IEEPA, a law intended for emergencies, not trade policy. A 6-3 decision invalidated most global tariffs, stating only Congress can authorize such measures. The ruling targeted a 10% import levy and higher penalties on key trading partners, risking over $175 billion in collected duties. Chief Justice Roberts emphasized Congress’s constitutional tax authority, applying the “major questions doctrine” to require explicit legislative approval for major economic actions.

Administrative Response and New Measures

Following the ruling, the Trump administration swiftly imposed a temporary 10% global tariff under Section 122 of the Trade Act, allowing up to 15% duties for 150 days to address balance-of-payments issues. The new tariff, effective Feb. 24, 2026, applies broadly but excludes some products. The administration also announced investigations under Sections 301 and 232 to justify long-term tariffs, citing unfair trade practices and national security concerns. Treasury Secretary Scott Bessent stated these measures aim to maintain revenue levels despite legal challenges.

Implications for Trade and Businesses

The ruling disrupted U.S. trade policy, invalidating IEEPA tariffs on imports from China, Mexico, and Canada, though some sector-specific duties remain. Importers may seek refunds for previously collected tariffs, a process that could take years. Economists warn the legal uncertainty and new temporary tariffs may raise costs, slow job growth, and complicate global supply chains. Internationally, governments expressed cautious relief over the IEEPA ruling but remain wary of the Section 122 tariff and ongoing investigations, which could reshape trade relations and prompt further legal disputes.