A new 10% tariff on U.S. imports is set to take effect on February 24, 2026.
The new duty, imposed under Section 122 of the Trade Act of 1974, impacts most imports but includes exemptions for certain,2026 critical minerals, agricultural products, and pharma.
The Decision: In a 6-3 ruling for Learning Resources, Inc. v. Trump, the conservative-majority court struck down the administration's broad use of the 1977 International Emergency Economic Powers Act (IEEPA) to impose tariffs.
The Rationale: Chief Justice John Roberts wrote that the IEEPA "does not authorize the President to impose tariffs," noting that if Congress intended to grant such extraordinary power, it would have done so explicitly.
Impact: The ruling invalidated many of Trump's previous "Liberation Day" tariffs, though it did not affect sector-specific duties on steel and aluminum.
Trump's Response
New Tariff Order: Shortly after the ruling, Trump signed an executive order for a 10% uniform tariff on all imports, intended to take effect on February 24, 2026.
Legal Pivot: To bypass the court's rebuke, the administration is now citing Section 122 of the Trade Act of 1974, which allows for temporary 150-day tariffs to address trade deficits. Within 24 hours of the initial announcement, Trump indicated he would raise the rate of this new global tariff to 15%.
Democratic leaders like Senator Elizabeth Warren noted there is currently no legal mechanism to refund the estimated $130 billion in tariffs already collected from businesses and consumers.
International: Trading partners such as Canada and the European Union are bracing for "more turbulence," while French President Emmanuel Macron hailed the U.S. court's decision as a vital democratic check and balance.
Economic Outlook: Despite the legal setback, Treasury Secretary Scott Bessent stated that the new method would keep 2026 tariff revenue "virtually unchanged"
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