
Trump Tariffs News: Supreme Court Ruling & New 10% Duty
When the Supreme Court delivers a 6-3 ruling that strikes down the president’s tariff authority, the tremors are felt from boardrooms to kitchen tables. Within hours of the February 20, 2026, decision, President Trump pivoted to a new legal basis for tariffs — a sweeping 10 percent global duty under Section 122 of the Trade Act of 1974.
Countries targeted by new tariffs: All (global 10%) ·
Tariff rate: 10% ·
Supreme Court action on previous tariffs: Struck down IEEPA-based duties ·
Key enforcement rationale: Forced labor concerns (Section 301 investigations)
Quick snapshot
- Supreme Court held IEEPA does not authorize tariffs (U.S. Supreme Court slip opinion)
- Trump announced 10% global tariff under Section 122 hours after ruling (Holland & Knight analysis)
- Section 122 tariffs expire after 150 days unless Congress extends them (Council on Foreign Relations analysis)
- Exact implementation date for new 10% tariff
- Whether exemptions or waivers will be granted
- Full list of country-specific Section 301 investigations
- How quickly consumer prices — including toilet paper — may adjust
- 2018-2020: Trump imposes IEEPA-based tariffs on China and others (Holland & Knight analysis)
- Aug 2025: Federal Circuit rules IEEPA doesn’t authorize tariff program (Holland & Knight analysis)
- Feb 20, 2026: Supreme Court affirms in 6-3 decision (SCOTUSblog case page)
- Feb 20, 2026: Trump announces 10% global Section 122 tariff (NBC News coverage)
- Section 122 tariffs could be in effect until ~July 2026 at latest (Holland & Knight analysis)
- Section 301 investigations may lead to additional country-specific tariffs (Holland & Knight analysis)
- Legal challenges to the new tariff authority are likely (Holland & Knight analysis)
- Importers may seek refunds of IEEPA-based duties already paid (Holland & Knight analysis)
Six key facts, one pattern: the legal foundation for tariffs keeps shifting, and each shift creates a new set of winners, losers, and question marks.
| Fact | Detail |
|---|---|
| New tariff announcement date | February 20, 2026 (hours after Supreme Court ruling) |
| Number of countries | All (global 10% tariff under Section 122) |
| Tariff rate | 10% (uniform, under Section 122) |
| Supreme Court ruling on previous tariffs | Struck down IEEPA-based duties (6-3 vote) |
| Primary justification | Forced labor concerns (Section 301 investigations launched) |
| Duration of new tariff | 150 days unless Congress extends |
| Refund possibility for past duties | Potential but complex legal process |
| Congressional role | Tariff authority left to Congress or statutes that clearly delegate power |
What did Trump do to tariffs?
Previous tariff actions (2018-2020)
- Trump imposed tariffs on China and other nations under the International Emergency Economic Powers Act (IEEPA), citing national security and trade imbalances. These duties covered thousands of products and escalated into a broad trade war.
- The Federal Circuit in August 2025 ruled that IEEPA did not authorize such a tariff program, a decision that set the stage for Supreme Court review (Holland & Knight analysis).
Supreme Court ruling on earlier duties
- On February 20, 2026, the Supreme Court held that IEEPA does not authorize the president to impose tariffs. The 6-3 opinion, authored by Chief Justice John Roberts, affirmed the Federal Circuit’s reasoning (U.S. Supreme Court slip opinion).
- The Court declared that tariff authority belongs to Congress or statutes that clearly delegate such power. The ruling effectively invalidated the entire IEEPA-based tariff regime (SCOTUSblog case page).
The Court did not ban tariffs — it banned that legal justification. Within hours, the administration had a new one ready.
The implication: The Supreme Court didn’t kill tariffs; it killed the IEEPA pathway. The new Section 122 route keeps tariffs alive but on a much shorter leash.
Are Trump tariffs still in effect?
Status of previous tariffs
- The IEEPA-based tariffs that Trump imposed from 2018-2020 were struck down by the Supreme Court. They are no longer in effect, though the legal process for refunds of already-collected duties is complex and case-specific (Holland & Knight analysis).
- SCOTUSblog reported that the judgment in one of the consolidated cases was vacated and remanded with instructions to dismiss for lack of jurisdiction (SCOTUSblog case page).
New tariff announcements
- Within hours of the ruling, President Trump announced a new 10 percent global tariff on all countries under Section 122 of the Trade Act of 1974. (Holland & Knight analysis)
- Holland & Knight reported that this announcement had not yet been backed by a written executive order at the time of its publication, leaving some legal ambiguity.
Why this matters: The current tariffs are temporary and uniform, not the targeted, long-term duties of the earlier era. Businesses cannot plan around a measure that expires in five months.
How much are Trump’s new tariffs?
Tariff rates and scope
- The new tariff is a flat 10% on all imports from all countries, applied uniformly as required by Section 122 (Council on Foreign Relations analysis).
- The administration also said it would launch country-specific investigations under Section 301 of the Trade Act of 1974, which could lead to additional, higher tariffs on select nations alleged to use forced labor. (Holland & Knight analysis)
Comparison to previous tariffs
- The old IEEPA tariffs ranged from 7.5% to 25% on specific product categories from China and other countries, often exceeding the new 10% flat rate.
- The Section 122 tariff is temporary — maximum 150 days unless Congress votes to extend it (Council on Foreign Relations analysis).
A lower uniform rate applied globally may be less disruptive than targeted high tariffs, but the short time window creates its own uncertainty for supply chains.
The pattern: The new tariff is simpler and lower than the previous regime, but its temporary nature means it functions more as a bargaining chip than a structural trade policy.
Will toilet paper be affected by tariffs?
America imports a significant share of its toilet paper from Canada — a country now subject to the 10% global tariff. While domestic production exists, supply constraints could lead to price increases or shortages.
- Analysts point out that Canadian mills supply a large portion of the US market for tissue products. Any import tariff raises costs for retailers, which may be passed to consumers.
- However, the Section 122 tariff is uniform and temporary; whether it leads to noticeable shelf-price changes depends on how quickly importers adjust supply chains.
“US president Donald Trump has announced plans for more sweeping tariffs of between 10 per cent and 12.5 per cent on 60 countries.”
BreakingNews.ie (initial report, pre-ruling)
What this means: For everyday goods like toilet paper, the impact is uncertain. Tariffs raise the floor on input costs, but the 150-day horizon may not be long enough to trigger permanent price adjustments.
How did the Supreme Court rule on Trump’s tariffs?
Key aspects of the ruling
- The Court held that IEEPA does not authorize the president to impose tariffs. The opinion explicitly states: “IEEPA does not authorize the President to impose tariffs.” (U.S. Supreme Court slip opinion)
- Chief Justice John Roberts authored the 6-3 opinion, with the consolidated cases being Learning Resources, Inc. v. Trump and Trump v. V.O.S. Selections (SCOTUSblog case page).
Impact on tariff enforcement
- The ruling dramatically limits the president’s ability to impose tariffs unilaterally using emergency powers. Future tariff actions must find a statutory basis that clearly delegates tariff authority (Holland & Knight analysis).
- Importers who paid IEEPA-based duties may have a path to seek refunds, but Holland & Knight warned that the process “would likely be complex” and no refund mechanism is automatic.
The Supreme Court didn’t just strike down a set of tariffs — it drew a constitutional line that presidents of either party will have to respect.
The implication: The ruling rebalances tariff power toward Congress. Any lasting tariff policy will need legislative backing, turning trade into a political negotiation rather than an executive order.
Timeline: Trump tariffs and the Supreme Court
- 2018-2020: Trump imposes IEEPA-based tariffs on China and other nations. (Holland & Knight analysis)
- August 2025: Federal Circuit rules IEEPA does not authorize the tariff program (Holland & Knight analysis).
- February 20, 2026: Supreme Court affirms in a 6-3 decision (SCOTUSblog case page).
- February 20, 2026 (hours later): Trump announces 10% global Section 122 tariff and Section 301 investigations (NBC News coverage).
- Through ~July 2026: Section 122 tariffs remain in effect unless extended by Congress (Council on Foreign Relations analysis).
What remains confirmed — and what’s unclear
Confirmed facts
- New tariffs of 10% global have been announced under Section 122 (Holland & Knight analysis)
- Supreme Court struck down all previous IEEPA-based tariffs in a 6-3 vote (SCOTUSblog case page)
- Section 122 tariffs expire after 150 days unless Congress extends (Council on Foreign Relations analysis)
- Section 301 investigations for forced labor have been launched (Holland & Knight analysis)
- Importers may seek refunds of IEEPA duties but process is complex (Holland & Knight analysis)
What’s unclear
- Exact implementation date of the new 10% tariff
- Whether exemptions will be granted for specific industries or countries
- How quickly consumer prices (toilet paper, electronics, etc.) will adjust
- Full list of Section 301 investigation targets
- Whether Congress will extend the Section 122 tariff past 150 days
Expert perspectives on the tariff shift
“The US Supreme Court struck down many of US President Donald Trump’s previous duties, limiting the executive’s unilateral tariff powers and sending the administration scrambling for a new legal basis.”
BBC News summarising the ruling
“President Trump has ordered a slate of import tariffs, throwing the global economy into a state of uncertainty.”
Reuters report on the initial 60-country plan
These assessments from major news outlets underscore how the whipsaw between judicial rejection and executive action leaves trading partners and businesses without a stable foundation for planning.
Summary: What the tariff battle means for you
The post-Supreme Court tariff landscape is a paradox: tariffs are narrower in scope and shorter in duration than before, but the speed of the administration’s pivot shows how quickly trade policy can change. For companies importing goods, the immediate task is to prepare for a possible 10% surcharge that could last five months — or become permanent if Congress acts. For consumers, the biggest unknowns are how much of the tariff will be passed along as higher prices and whether essential goods like toilet paper will see supply disruptions. For policymakers, the message from the Court is clear: executive tariff authority has limits, and the next move belongs to Congress.
Following the Supreme Court’s decision, CBP halts IEEPA tariffs as the administration pivots to a new 10% global duty under Section 122.
Frequently asked questions
What are tariffs?
Tariffs are taxes imposed on imported goods, typically paid by the importing company. They are often used to protect domestic industries or as a tool in trade negotiations.
How do tariffs affect consumers?
When tariffs increase the cost of imported goods, retailers often raise prices, passing the cost to shoppers. Essential items like food, clothing, and household products can become more expensive.
What is the purpose of Trump’s tariffs?
The stated purpose is to address unfair trade practices and forced labor concerns. Critics argue they are primarily protectionist and risk sparking retaliatory tariffs from other nations.
Are there exemptions to the new tariffs?
The Section 122 tariff is applied uniformly to all countries, so no country-specific exemptions. However, the administration may grant product exclusions later, as was done under previous tariff regimes.
How have other countries reacted to Trump’s tariffs?
Many trading partners have signaled potential retaliatory tariffs of their own. Canada, the EU, and China are among those that could respond with duties on US exports.
What is the Trump Tariff Tracker?
The Trump Tariff Tracker is a widely used reference tool maintained by the Peterson Institute for International Economics that catalogs all tariff actions taken during the Trump administration.
How do tariffs impact the US economy?
Tariffs can protect some domestic industries but also raise costs for businesses that rely on imported inputs, potentially slowing economic growth and increasing inflation.
Can the new Section 122 tariffs be challenged in court?
Legal challenges are likely. The Supreme Court’s IEEPA ruling does not directly apply to Section 122, but opponents may argue that even this statute does not provide a clear enough delegation of tariff authority.