Supreme Court blocks IEEPA tariffs, ruling on Feb 20, 2026 The nine‑member court issued a 6‑3 decision that the president lacks authority to use the 1977 International Emergency Economic Powers Act to impose taxes on imports from virtually every country [1][2]. The ruling nullified the “reciprocal” tariffs that had generated roughly $130 billion in revenue since 2024. Over 1,000 companies have already filed for refunds, and Treasury Secretary Scott Bessent warned that litigation could delay repayments for years [1].

Trump signs Section 122 proclamation, sets 10% duty Hours after the decision, President Trump signed a proclamation invoking the unused Section 122 of the 1974 Trade Act, announcing a 10% tariff on almost all imports [1][2]. He posted on Truth Social that the measure would take effect “almost immediately,” with an implementation date of Feb 24, 2026 [2]. Trump later hinted the rate could rise to 15% if he chooses, citing the law’s allowance for higher duties [1].

Legal basis shifts, 150‑day limit and congressional renewal The new tariff relies on Trade Act authority, not IEEPA, because judges ruled IEEPA powers reside with Congress [2]. Section 122 permits tariffs up to 15% for a maximum of 150 days, after which Congress must act to extend them [1][2]. Analysts note Trump could let the tariff lapse and declare a new emergency to restart it, effectively bypassing legislative oversight [1].

Revenue outlook steady, political backlash intensifies Treasury officials say the mix of Section 122, existing Section 232 steel/aluminium duties, and potential Section 301 actions should keep 2026 tariff revenue “virtually unchanged” despite refunds [1]. Illinois Governor JB Pritzker called for a $1,700 rebate check per household, while Trump has floated similar rebates without a concrete plan [1]. Business groups continue to press for refunds, and the administration’s trade‑war narrative persists despite the court’s rebuke [2].