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Supreme Court Strikes Down Trump’s Broad Tariffs; New 10% Global Levy Set

Supreme Court Strikes Down Trump’s Broad Tariffs; New 10% Global Levy Set
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The U.S. Supreme Court dealt a major blow to President Donald Trump’s trade agenda on Friday by striking down his sweeping global tariffs in a 6–3 ruling, prompting the White House within hours to announce a new temporary 10% “global tariff” that will hit most imports starting Feb. 24. The decision curtailed his use of emergency powers for trade but left other tariff tools intact, setting up a new phase of legal and economic battles over U.S. trade policy bbc +1.

The Court held that Trump exceeded his authority when he used the 1977 International Emergency Economic Powers Act (IEEPA) to levy broad “reciprocal” and “trafficking” tariffs on goods from more than 60 countries, a program that had raised well over $175 billion in revenue by late 2025 bbc. In response, Trump signed an executive order invoking Section 122 of the 1974 Trade Act to impose a nondiscriminatory 10% levy on nearly all imports for up to 150 days, with extensions requiring congressional approval, while keeping existing national-security and China-related tariffs in place politico +1.

What the Court Struck Down — and What Still Stands

Chief Justice John Roberts, writing for the majority, concluded that IEEPA’s power to “regulate … importation” did not extend to imposing broad taxes on imports, stressing that “the president must point to clear congressional authorization” before assuming such a core taxing power bbc +1. The justices applied the “major questions” doctrine, signaling that Congress — not the White House — must explicitly sign off on measures of such vast economic and political scope.

The ruling invalidated Trump’s centerpiece 2025 tariff program, which had layered new duties on goods from dozens of U.S. trading partners, including China, Canada, Mexico and the European Union, under emergency authorities originally crafted for sanctions and asset freezes rather than general tariffs bbc +1. However, the Court left untouched tariffs imposed under other statutes, notably Section 232 national-security levies and Section 301 tariffs largely targeting Chinese imports, which the administration stressed remain “in full force and effect” politico +1.

The New 10% Global Tariff and the Road Ahead

Within hours of the ruling, Trump lashed out at the justices as “fools” and signed an order imposing a new 10% global tariff under Section 122, calling it a “temporary” measure and vowing to find “other alternatives” to maintain tariff pressure and revenue nytimes +2. The levy, set to take effect at 12:01 a.m. on Feb. 24, must be nondiscriminatory by law but will include exemptions for sectors such as energy, pharmaceuticals, autos and aerospace, as well as special treatment for North American partners under existing trade pacts politico +1.

Treasury Secretary Scott Bessent said shifting to Section 122 and leaning more heavily on Section 232 and 301 authorities would result in “virtually unchanged tariff revenue in 2026,” even as importers and consumer advocates predicted some price relief from the struck‑down IEEPA duties cnbc +1. Business groups and legal experts, meanwhile, are preparing a wave of refund claims and potential lawsuits to recover billions paid under the now‑illegal tariffs, while U.S. trading partners weigh fresh WTO challenges and possible retaliation bbc +2.

The Bigger Picture

The ruling underscored the Supreme Court’s growing skepticism of aggressive executive economic actions and reasserted Congress’s constitutional role over taxes and tariffs, even as the administration immediately pivoted to other legal tools to preserve its hard‑line trade stance. For consumers and companies, the near‑term reality is a confusing mix: some emergency‑based tariffs will disappear, a new 10% blanket duty is about to arrive, and targeted national‑security and China tariffs remain — ensuring that trade, prices and presidential power over the economy will stay at the center of U.S. politics well beyond this week’s decision bbc +2.