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WASHINGTON – President Trump is enacting a new 10 percent tariff on nearly all imports to the United States, a move designed to circumvent a recent Supreme Court decision that struck down previous tariffs imposed by his administration. The executive order, signed Friday evening, includes exceptions for critical minerals, beef, fruits, automobiles, pharmaceuticals, and goods originating from Canada, and Mexico. The tariffs are set to capture effect on February 24, 2026.
The action follows the Supreme Court’s ruling against the use of the International Emergency Economic Powers Act (IEEPA) to justify broad tariffs, a decision that Trump publicly criticized during a press conference Friday. The new tariffs are being levied under Section 122 of the Trade Act of 1974, which allows the president to impose tariffs of up to 15 percent based on “large and serious” trade deficits. This statute differs from IEEPA and has never been utilized in this manner by a previous U.S. President.
The administration’s strategy signals a willingness to aggressively pursue protectionist trade policies despite legal challenges. While Section 122 tariffs are limited to a 150-day duration unless Congress authorizes an extension, experts suggest the Trump administration may use this period to establish alternative legal justifications for continued tariffs. “Section 122 tariff is for a limited time period, so it’s going to be a bridge authority,” explained Gregory Husisian, a partner and litigation attorney at Foley & Lardner LLP, who has assisted numerous companies in seeking tariff refunds.
The White House is also reportedly preparing to initiate investigations into national security concerns and unfair trade practices, potentially paving the way for tariffs under Section 301 and Section 232 of the Trade Act. “We are also initiating several Section 301 and other investigations to protect our country from unfair trade practices of other countries and companies,” Trump stated at the press conference.
Supreme Court Decision and Refund Uncertainty
The Supreme Court’s decision, as reported by NPR, centered on the principle that while IEEPA grants the president significant power during emergencies, that power does not extend to the imposition of taxes. The ruling effectively invalidated tariffs on billions of dollars worth of goods.
However, the court did not provide guidance on how to handle refunds for tariffs already paid. Trump indicated he anticipates legal battles over this issue, stating he expects the matter to be “litigated in court.” Experts predict a complex and lengthy refund process, potentially requiring companies to file individual claims and negotiate with the government over the amounts owed. The New York Times reports that this process could take anywhere from a few months to over two years.
De Minimis Exemption Remains Suspended
In a separate executive order, the administration confirmed the continued suspension of the de minimis exemption, which previously allowed for the duty-free import of goods valued under $800. The suspension, implemented last year, led to significant backlogs at U.S. Borders and increased costs for consumers purchasing goods online, as noted by the BBC.
Trump’s Reaction and Future Trade Actions
During the press conference, Trump repeatedly misrepresented the Supreme Court’s ruling, claiming it granted him broad authority to ban imports while only restricting his ability to charge fees. He also launched personal attacks against the justices who ruled against his policies, calling them “a disgrace to our nation” and criticizing his own nominees, Neil Gorsuch and Amy Coney Barrett, as “an embarrassment to their families.” The president also veered into unrelated topics, including criticisms of Europe and the Federal Reserve.
The administration’s move to utilize Section 122 represents a temporary measure, and the long-term impact on international trade remains uncertain. The coming months will likely see increased legal challenges and further investigations into trade practices, potentially leading to additional tariffs under different legal frameworks. The situation warrants close monitoring by businesses and policymakers alike as the administration navigates this evolving trade landscape.
What remains to be seen is whether Congress will attempt to curtail the president’s use of Section 122, and how the refund process for previously paid tariffs will unfold. The administration’s next steps will be crucial in determining the future of U.S. Trade policy.
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