Trump Imposes Temporary 10% Global Tariff After Supreme Court Setback

U.S. President Donald Trump has moved swiftly to reimpose trade tariffs after the Supreme Court of the United States struck down earlier duties levied under emergency powers.

Through executive orders signed on February 20, the administration announced a temporary 10% global import duty effective from February 24, invoking Section 122 of the Trade Act of 1974.

Background: Why the Move?

Earlier tariffs (ranging from 10% to 50%) had been imposed under the International Emergency Economic Powers Act (IEEPA).

However, the Supreme Court declared these duties illegal, ending their collection and raising the possibility of refunds worth nearly $175 billion, according to estimates from the Penn-Wharton Budget Model.

What Is Section 122?

• Part of the Trade Act of 1974
• Allows the President to impose up to 15% tariffs
• Duration: Maximum 150 days
• Justification: Address “large and serious” balance-of-payments deficits
• No prior investigation required
• Requires Congressional approval for extension beyond 150 days

The administration justified its use by citing a “large and serious balance of payments deficit.”

Other Legal Tools Activated

The President also initiated investigations under:

Section 301 (Trade Act of 1974)

• Targets unfair trade practices
• Allows country-specific tariffs

Section 232 (National Security Statute)

• Permits tariffs if imports threaten national security

Together, these provisions could restore much of the tariff regime invalidated by the Court.

Fiscal Impact

• Roughly $175 billion in tariff revenue collected over the past year may be subject to refunds.
• The new 10% tariff plus potential Section 301/232 duties could keep 2026 tariff revenues largely unchanged.