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Trump Unveils 10% Global Tariff via Section 122 After Supreme Court Ruling

Updated (2 articles)

Supreme Court Blocks Trump’s Global Tariff Plan The 6‑3 decision on February 20 declared that only Congress may impose taxes, rendering President Trump’s emergency‑power tariffs unconstitutional [1][2]. The ruling overturned most of the worldwide duties announced in 2025 and was hailed as a victory for businesses that sued the policy [2]. Senators split along party lines, with Republicans praising congressional authority and Democrats demanding refunds for affected firms [1].

Trump Issues 10% Tariff Under Section 122 Hours after the Court’s opinion, Trump signed an executive order imposing a uniform 10 % levy on all imports, invoking the rarely used Section 122 that permits tariffs up to 15 % for a 150‑day period before congressional review [1][2]. The order applies to all trading partners, including the UK, India, and the EU, which must honor existing concessions while facing the new rate [2]. Trump framed the move as “a powerful alternative” to protect American industry despite the legal setback [1].

Treasury Reports Over $130 Billion Collected From Tariffs Federal data show the Treasury has already amassed $130 billion in duties under the International Emergency Economic Powers Act, with AP reporting a slightly higher figure of $133 billion [1][2]. The Congressional Budget Office estimates the original tariff scheme would have generated about $3 trillion in economic impact over ten years, but refunds for businesses remain uncertain and likely to be tied up in litigation [1][2]. Lawmakers are pressing for mechanisms to return excess payments, while industry groups warn of lingering uncertainty [1].

Markets and Industry React to New Tariff Regime The S&P 500 edged higher after the announcement, rising 0.1 % according to AP and about 0.7 % in the BBC report [1][2]. Small‑firm owners described the decision as a “relief,” though they expect supply‑chain recovery to take months; a Michigan apparel maker said it will raise prices to absorb the additional cost [1]. The American Iron and Steel Institute noted that steel tariffs under national‑security authority remain unaffected, underscoring sector‑specific nuances [1].

Sources

Timeline

2025 – President Trump announces a sweeping global tariff plan under the International Emergency Economic Powers Act, imposing duties on imports from dozens of countries and aiming to generate billions in revenue; the policy later amasses over $130 billion in collections. [1][2]

Feb 20, 2026 – The U.S. Supreme Court issues a 6‑3 ruling that blocks the global tariffs, holding that only Congress may levy taxes and that the president exceeded his constitutional authority. [1][2]

Feb 20, 2026 – Hours after the decision, Trump signs an executive order imposing a uniform 10 % tariff on all imports under Section 122, which permits tariffs up to 15 % for a 150‑day period before Congress must act; he says the levy will be pursued “through very powerful alternatives.” [1][2]

Feb 20, 2026 – Treasury reports it has already collected more than $130 billion in duties from the blocked IEEPA tariffs, while the Congressional Budget Office estimates the original plan would have produced about $3 trillion in economic impact over the next decade. [1][2]

Feb 20, 2026 – Lawmakers react: Sen. Lisa Murkowski calls the ruling “a clear rebuke” of presidential overreach; Senate Republicans Mitch McConnell and Susan Collins praise the affirmation of congressional authority; Sen. Maria Cantwell demands a refund plan for affected businesses. [2]

Feb 20, 2026 – Trade groups respond: the U.S.–ASEAN Business Council warns of “uncertainty and confusion” but says overall trade ties remain “firmly intact,” while the American Iron and Steel Institute notes that steel tariffs under national‑security authority stay unchanged. [2]

Feb 20, 2026 – Small‑business owners express relief: Beth Benike of Busy Baby and Nik Holm of Terry Precision Cycling say the decision lifts a weight off their chests, though they expect supply‑chain recovery to take months. [1]

Feb 20, 2026 – Financial markets show modest optimism: the S&P 500 closes about 0.7 % higher in one report and 0.1 % higher in another, while a Michigan apparel maker plans to raise prices to cover the new 10 % tariff. [1][2]

Feb 20, 2026 – Potential refunds for firms that paid the blocked duties remain uncertain, as litigation is expected to tie up reimbursements for years. [1]

Feb 20, 2026 – The 150‑day window under Section 122 begins, after which Congress must decide whether to extend, modify, or terminate the 10 % tariff regime. [2]

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