Supreme Court Strikes Down Trump’s Emergency Tariffs, President Unveils 10% Global Duty
Updated (7 articles)
Supreme Court Invalidates IEEPA‑Based Emergency Tariffs — In a 6‑3 decision issued on Feb 20, 2026, the U.S. Supreme Court held that the 1977 International Emergency Economic Powers Act does not grant the president authority to impose sweeping “reciprocal” duties, rejecting the administration’s claim of unlimited emergency power and emphasizing the need for clear congressional authorization [1][2][4][5][6][7].
Trump Responds with 10% Worldwide Tariff — Hours after the ruling, President Donald Trump signed a proclamation imposing a 10 percent tariff on imports from all countries for 150 days, invoking Section 122 of the 1974 Trade Act and exempting critical minerals, certain agricultural products, and specific vehicle categories, according to a White House fact sheet [1][2][3].
South Korea Tariff Reduction and Investment Deal — The reciprocal tariff on South Korean goods, originally 25 percent, had been cut to 15 percent after Seoul pledged a US$350 billion investment package, a concession announced on “Liberation Day” (April 2, 2025) and now under review by the Cheong Wa Dae amid domestic pressure ahead of June local elections [1][2][4][5][6][7].
Potential Refunds Exceed $175 Billion — Reuters, citing Penn Wharton Budget Model economists, warned that more than $175 billion in tariff collections could be subject to repayment if the emergency duties are invalidated, creating a complex refund process for affected importers [1][2][4][5][6][7].
Sector‑Specific Duties Remain Unaffected — The Court’s decision does not touch tariffs imposed under Section 232 of the 1962 Trade Expansion Act or other statutes; duties on Canada (35 %), Mexico (25 %), China’s fentanyl‑related imports (10 %), and high‑rate levies on Brazil and India continue, and the administration is expected to rely on Section 232, Section 301, and Section 338 for future measures [3][4][5][6][7].
Sources
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1.
Yonhap: Supreme Court blocks Trump’s emergency tariffs; president pivots to new duties: Details the 6‑3 ruling, Trump’s 10 % global tariff, original 15 % South Korea rate, constitutional reasoning, $175 B refund risk, and political pressure on South Korea .
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2.
Yonhap: Supreme Court Blocks Trump’s Emergency Tariffs, President Vows New Measures: Highlights the same ruling, Trump’s “disgrace” comment, 10 % global tariff under Section 122, and the $350 B investment‑linked tariff cut .
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3.
AP: Supreme Court Blocks Trump’s IEEPA Tariffs as President Plans New 10% Global Tax: Adds that many sector‑specific levies stay, outlines tariffs on EU, Japan, Canada, Mexico, China, Brazil, and India, and notes the 150‑day limit .
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4.
Yonhap: Supreme Court blocks Trump’s emergency tariff scheme: Focuses on the Court’s constitutional analysis, the 15 % South Korea tariff review, and the unchanged sector‑specific regimes .
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5.
Yonhap: Supreme Court blocks Trump’s emergency tariff scheme: Emphasizes the $175 B refund outlook, alternative statutory tools the administration may use, and potential political fallout in South Korea .
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6.
Yonhap: Supreme Court Blocks Trump's Emergency Tariffs, Raising Trade Uncertainty: Discusses trade uncertainty, possible pivots to Sections 232, 301, 338, and implications for U.S. midterm elections .
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7.
Yonhap: Supreme Court Blocks Trump’s Emergency Tariffs: Recaps the ruling, earlier appeals‑court decision, “Liberation Day” announcement, and the looming refund process .
Timeline
Apr 2, 2025 – President Trump declares a national emergency and launches “Liberation Day” tariffs, imposing up to 50 % duties on dozens of nations and a baseline 10 % on virtually all others, signaling a major shift in U.S. trade policy[1].
May 2025 – A federal district court rules that the president’s use of the 1977 International Emergency Economic Powers Act (IEEPA) to impose the reciprocal tariffs exceeds his statutory authority, setting the legal foundation for later challenges[7].
Aug 7, 2025 – The higher reciprocal tariff rates announced in April take effect, hitting the EU, Japan and South Korea with 15 % duties and applying up to 50 % on selected products from other partners[1].
Late Aug 2025 – The U.S. Court of Appeals for the D.C. Circuit affirms the May district‑court decision, formally striking down the IEEPA‑based tariffs and clearing the way for a Supreme Court review[7].
Mid‑2025 – South Korea pledges a US$350 billion investment package in the United States; in response, the administration reduces the South Korean reciprocal tariff from 25 % to 15 % as leverage in the broader trade deal[2][3].
Feb 20, 2026 – The Supreme Court issues a 6‑3 opinion written by Chief Justice John Roberts, holding that IEEPA contains no tariff authority and that any such power requires “clear congressional authorization,” thereby invalidating the emergency tariffs[2][3][4].
Feb 20, 2026 – Hours after the ruling, President Trump signs a proclamation imposing a 10 % worldwide tariff for 150 days under Section 122 of the 1974 Trade Act, exempting critical minerals, certain agricultural products, and specific vehicle categories[2].
Feb 20, 2026 – Trump denounces the Court’s decision as “a disgrace to our nation,” framing the setback as an attack on American economic sovereignty[3].
Feb 20, 2026 – Trump warns that undoing the IEEPA tariffs would be “the biggest threat in history” to U.S. security and a “terrible blow” to America, underscoring his view of the tariffs as a national‑security tool[6].
Feb 20, 2026 – Reuters cites Penn Wharton Budget Model economists who estimate that more than $175 billion in tariff collections could be subject to repayment, highlighting the fiscal stakes of the Court’s decision[2][3][4][5][6][7].
Feb 20, 2026 – South Korea’s presidential office (Cheong Wa Dae) says it will comprehensively review the ruling, while CSIS expert Victor Cha warns President Lee Jae Myung may face pressure to abandon the trade pact ahead of the June 2026 local elections[2][3][4][5][6].
June 2026 (planned) – South Korean local elections occur, a political flashpoint that could reshape the country’s stance on the U.S. trade agreement in the wake of the Supreme Court ruling[2][3][4][5][6].
Nov 2026 (planned) – U.S. midterm elections approach, and analysts predict the trade‑policy fallout from the tariff reversal could influence voter sentiment and congressional dynamics[6].