News|Donald TrumpUS President Trump promises new tariffs, slams Supreme Court decisionSupreme Court blocks Trump’s emergency tariffs, but he plans to invoke other laws to maintain and raise tariffs.
On Fri, Feb 20, 2026, the United States Supreme Court issued a 6-3 ruling that overturned the use of the International Emergency Economic Powers Act (IEEPA) by the US President to impose global tariffs. The court's decision emphasizes that Congress holds…
On Fri, Feb 20, 2026, the United States Supreme Court issued a 6-3 ruling that overturned the use of the International Emergency Economic Powers Act (IEEPA) by the US President to impose global tariffs. The court's decision emphasizes that Congress holds the exclusive authority to levy tariffs in peacetime. Consequently, the ruling affects the previously established tariffs under the IEEPA, which were deemed unauthorized without congressional approval.
Following the court's decision, the President announced plans to utilize the Trade Expansion Act of 1962 to impose a 10 percent global tariff for 150 days. This measure is intended to replace some of the tariffs invalidated by the court’s ruling. The administration also indicated that ongoing investigations into unfair trade practices might lead to further tariff implementations.
The Supreme Court's ruling reduces the effective tariff rate from 12.7 percent to 8.3 percent. This decision significantly impacts the projected revenue, which was estimated to be nearly $3.6 trillion from 2026 to 2035. However, the President contends that the Trade Expansion Act could potentially increase tariff revenue over the long term.
The court's decision emphasizes that Congress holds the exclusive authority to levy tariffs in peacetime.
The proposed 10 percent tariff is expected to take effect shortly, aiming to enhance revenue and address trade imbalances.
According to economic analysts, the Supreme Court's decision complicates the administration's ability to implement tariffs swiftly. The administration is exploring existing legal frameworks to maintain tariff revenue and leverage, despite the challenges presented by the court's ruling. The situation remains uncertain, and adjustments to the administration's tariff strategy may be necessary.
Overall, the decision introduces a degree of stability to US tariff processes, although the President's plans to explore alternative methods for imposing tariffs suggest continued economic uncertainty.
Based on reporting by Al Jazeera.