On February 20, 2026, the Supreme Court struck down President Trump’s emergency tariffs in a 6-3 ruling. The Court found the International Emergency Economic Powers Act did not authorize presidential tariffs. The administration responded by imposing a new 10% global tariff under Section 122 of the Trade Act of 1974, effective February 24. Treasury Secretary Scott Bessent stated the alternative tariff tools would keep revenue virtually unchanged.
The Supreme Court has triggered a major constitutional standoff over U.S. trade policy. In a 6-3 ruling, the Court struck down the president’s sweeping emergency tariffs, finding the White House had overstepped its legal authority. Chief Justice John Roberts wrote the majority opinion, stating Congress did not grant such power clearly or with careful constraints.
President Trump called the ruling “deeply disappointing” and expressed shame toward certain justices. He referred to those who ruled against his policy as “fools and lapdogs” but indicated powerful alternatives existed. Within hours, he signed an executive order imposing a new 10% global tariff on all countries using a different statute.
The new policy, based on Section 122 of the Trade Act of 1974, takes effect February 24. Congress would need to act to extend these tariffs beyond 150 days. The ruling invalidates tariffs previously levied under the International Emergency Economic Powers Act.
This directly alters the trade dynamic with China and BRICS nations. China previously had a combined 45% tariff from two IEEPA layers plus a Section 301 duty. The new flat 10% rate reduces China’s total to 35%, pending possible future adjustments. Other BRICS countries like India, Brazil, and South Africa may see a reduced practical load under the temporary global rate.
Treasury Secretary Scott Bessent addressed the financial impact at the Economic Club of Dallas. He stated that combined Section 122, 232, and 301 tariff tools “will result in virtually unchanged tariff revenue in 2026.” The refund status of roughly $134 billion already paid by importers under the invalidated authority remains unresolved.
