The US Supreme Court ruled that President Donald Trump's tariffs imposed under the 1977 IEEPA law were unlawful. Hours later, Trump signed an executive order imposing a 10% global tariff on all countries under Section 122 of the 1974 Trade Act. The tariff will take effect almost immediately and last for 150 days.
On February 20, 2026, the US Supreme Court ruled 6-3 that President Trump overstepped his authority by using the 1977 International Emergency Economic Powers Act (IEEPA) to impose tariffs. The bench, led by Chief Justice John Roberts, stated that the law allows regulation of imports but not the imposition of tariffs.
Trump criticized the decision as 'disgraceful' and said he was ashamed of some court members. He remarked, 'I can destroy trade, I can impose sanctions on a country. I can do a lot, but I can't impose a $1 tariff? How ridiculous is that?' Trump referenced Justice Brett Kavanaugh's dissent.
Shortly after, Trump signed a new executive order from the Oval Office. On Truth Social, he posted, 'It is my Great Honor to have just signed, from the Oval Office, a Global 10% Tariff on all Countries, which will be effective almost immediately.' The tariff is imposed under Section 122 of the 1974 Trade Act, which allows up to 15% to address balance-of-payments deficits, but Trump opted for 10%. It will last 150 days unless extended by Congress.
The struck-down tariffs include the April 2025 'Liberation Day' tariffs, with up to 50% reciprocal duties on dozens of countries and a 10% baseline on all. Tariffs on Canada, Mexico, and China for migration and drugs (25-35%), Brazil at 40%, and India up to 50% (due to Russian oil imports) are also affected. However, a recent US-India trade agreement reduced India's tariffs to 18%.
The administration signaled further actions under Section 232 (national security) and Section 301 (unfair trade practices). Treasury Secretary Scott Bessent stated that tariff revenue in 2026 would remain unchanged. Refunds on the previous year's $175 billion in tariffs remain uncertain, with Trump saying litigation could last two years.
Sector-specific tariffs, such as on steel and aluminum, are unaffected by the ruling.
