The Supreme Court overturned the administration’s use of emergency powers to implement global tariffs. The new tariffs are invoked under a different authority.
President Donald Trump said on Feb. 20 that he signed an order to impose a 10 percent global tariff in response to the Supreme Court striking down sweeping levies issued under an emergency powers law.
“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,” Trump said on his Truth Social platform.
The tariffs will take effect on Feb. 24 and are implemented under a federal statute known as Section 122. These tariffs can only last for 150 days, unless it’s extended by Congress. The administration will also be exploring alternative tariff pathways in the meantime, Trump said at a briefing earlier on Friday.
The Supreme Court, in a 6-3 ruling, held that the administration lacked authority under the International Emergency Economic Powers Act to levy tariffs on dozens of countries.
The president called the high court’s ruling “deeply disappointing” and said he was “ashamed” of some of the justices.
“I’m ashamed of certain members of the court—absolutely ashamed for not having the courage to do what’s right for our country,” the president stated.
“The good news is that there are methods, practices, statutes, and authorities, as recognized by the entire court in this terrible decision, and also recognized by Congress, which they refer to, that are even stronger than the IEEPA [International Emergency Economic Powers Act] tariffs available to me as president of the United States,” the president said.
Section 122 of the Trade Act of 1974 allows a president to impose tariffs of up to 15 percent—and potentially restrict import volumes—on countries running “large and serious” trade surpluses with the United States.
Using Section 301 of the same act would open a series of investigations into potential unfair trade practices—moves that could lead to additional tariffs.
The law gives the president broad authority to respond to such practices, including through tariffs or sanctions. It also empowers U.S. Trade Representative Jamieson Greer to examine and act on foreign government policies the White House views as violating U.S. trade agreements.
While Trump suggested that the high court’s ruling provides “greater certainty” to the economy, he also said, “We have the right to do pretty much what we want to do.”
Trump criticized the Supreme Court’s decision that prevents the president from raising “one dollar of revenue” using IEEPA authorities.
Treasury Secretary Scott Bessent said the new authorities will not change revenue projections.
“Treasury’s estimates show that the use of Section 122 authority, combined with potentially enhanced Section 232 and Section 301 tariffs, will result in virtually unchanged tariff revenue in 2026,” Bessent said in prepared remarks at the Economic Club of Dallas.
By Andrew Moran
