Supreme Court Strikes Down Trump’s IEEPA Tariffs, President Announces 10% Global Duty
Updated (6 articles)
Court Ruling Invalidates IEEPA‑Based Emergency Tariffs In a 6‑3 decision 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 reciprocal tariffs, overturning the lower‑court ruling and nullifying the emergency duties on South Korea and other partners [1][2][3][4][5][6].
Chief Justice Roberts Emphasizes Congressional Authorization Chief Justice John Roberts wrote that any tariff power must be grounded in clear congressional legislation, noting that IEEPA contains no reference to duties and rejecting the administration’s claim of unlimited emergency authority [1][3][4][5][6].
South Korea Tariffs Reduced After $350 Billion Investment Pledge The reciprocal tariff on South Korean goods, previously 25%, had been cut to 15% following Seoul’s commitment to invest $350 billion in the United States, a leverage point now under review by the Korean presidential office ahead of June local elections [1][3][4][5][6].
Potential $175 Billion Refund Looms for U.S. Importers Economists at Penn Wharton Budget Model, cited by Reuters, estimate that more than $175 billion collected under the invalidated tariffs could require refunds, creating a complex repayment process for the Treasury [1][3][4][5].
Other Tariff Regimes Remain Intact; Trump Proposes New Global Duty Sector‑specific duties under Section 232 and other statutes survive the ruling; President Trump announced an executive order to impose a 10% worldwide tariff for up to 150 days using Section 122 of the 1974 Trade Act, labeling the court’s decision a “disgrace” and pledging to continue pressure on trade partners [1][2][5][6].
Discrepancies on Scope and Timing of New Tariff The AP notes the 10% global tariff will be limited to 150 days, while Yonhap’s coverage focuses on the president’s intent to use “other statutes” without specifying duration, reflecting slight variation in reported implementation details [2][1].
Sources
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1.
Yonhap: Supreme Court Blocks Trump’s Emergency Tariffs, President Vows New Measures – Details the 6‑3 ruling, Roberts’ opinion, the 10% global tariff plan, and the $350 billion South Korean investment deal .
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2.
AP: Supreme Court Blocks Trump’s IEEPA Tariffs as President Plans New 10% Global Tax – Highlights the invalidation, remaining sector‑specific tariffs, and the 150‑day, 10% worldwide tariff under Section 122 .
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3.
Yonhap: Supreme Court blocks Trump’s emergency tariff scheme – Emphasizes the legal reasoning, South Korean tariff review, and the $175 billion refund risk .
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4.
Yonhap: Supreme Court blocks Trump’s emergency tariff scheme – Reiterates the ruling, refund concerns, and potential use of alternative statutes such as Sections 232, 301, 338 .
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5.
Yonhap: Supreme Court Blocks Trump's Emergency Tariffs, Raising Trade Uncertainty – Discusses the impact on trade negotiations, political fallout in South Korea, and possible statutory workarounds .
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6.
Yonhap: Supreme Court Blocks Trump’s Emergency Tariffs – Provides background on the “Liberation Day” announcement, the $350 billion deal, and the looming refund process .
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Timeline
1930 – The Tariff Act of 1930 includes Section 338, which later serves as a possible legal tool for imposing duties when other statutes are struck down, as officials consider alternative authorities after the Supreme Court decision [4].
1962 – The Trade Expansion Act of 1962 creates Section 232, granting the president authority to levy tariffs on imports deemed a threat to national security; this authority remains intact after the Court’s 2026 ruling [4].
1974 – The Trade Act of 1974 establishes Section 301, allowing the president to impose trade measures against countries that violate trade agreements; policymakers cite it as a fallback after the IEEPA tariffs are invalidated [4].
1977 – Congress passes the International Emergency Economic Powers Act (IEEPA), which the Supreme Court later interprets as lacking explicit tariff‑setting power, forming the legal basis for the 2026 decision [1].
April 2, 2025 – President Trump declares a national emergency and launches “Liberation Day” tariffs, imposing a baseline 10% duty on virtually all imports and up to 50% on dozens of nations, stating the move counters “unusual and extraordinary” threats to U.S. security and the economy [6][1].
August 7, 2025 – Higher “Liberation Day” rates of up to 50% take effect on targeted countries, while the United States maintains a uniform 15% tariff on the EU, Japan and South Korea and threatens to raise South Korean duties to 25% pending negotiations [1].
2025 (early) – South Korea pledges a $350 billion investment in the United States; in response, the administration reduces reciprocal tariffs on South Korean goods from 25% to 15% to secure the deal [2][1].
May 2025 – A federal district court rules that the Trump administration’s use of IEEPA to impose reciprocal tariffs exceeds presidential authority, setting a precedent that the Supreme Court later upholds [6].
Late August 2025 – The U.S. Court of Appeals for the District of Columbia Circuit affirms the May district‑court decision, confirming that IEEPA does not authorize the sweeping tariff regime [6].
Feb 20, 2026 – In a 6‑3 decision, the Supreme Court holds that IEEPA lacks tariff‑setting authority, striking down the reciprocal duties on South Korea and other partners, and Chief Justice Roberts writes that any tariff power must be grounded in clear congressional authorization [1][2][3][4][5].
Feb 20, 2026 – President Trump declares the Court’s ruling “a disgrace to our nation” and vows to impose a new 10% global tariff for 150 days under Section 122 of the 1974 Trade Act, signaling a rapid policy pivot after the decision [1][2].
Feb 20, 2026 – Economists from the Penn Wharton Budget Model warn that more than $175 billion in tariff collections could require refunds if the emergency duties are invalidated, highlighting a massive fiscal implication of the Court’s ruling [2][3][4][5].
June 2026 – South Korea prepares for local elections, and President Lee Jae Myung faces domestic pressure that could affect the bilateral trade pact with the United States, as the government plans a comprehensive review of the Supreme Court decision [2][4][5].
Nov 2026 – The United States heads toward midterm elections, and the administration’s trade strategy—including the pending 10% global tariff and potential refund process—becomes a focal point for voters and lawmakers [5].