On the Dash:
- Supreme Court struck down Trump emergency tariffs in a 6-3 ruling; auto duties under other laws remain.
- Refunds to importers could total $170 billion, over half of the revenue collected under the invalidated tariffs.
- Trump vows to maintain existing tariffs, impose a 10% global levy, and pursue additional trade investigations.
The U.S. Supreme Court ruled 6-3 on Feb. 20 that many of former President Donald Trump’s tariffs under the International Emergency Economic Powers Act of 1977 were illegal, while tariffs issued under other authorities, including duties on vehicles, auto parts, steel, aluminum, and copper, remain in effect.
Trump addressed the ruling during a press briefing, emphasizing that all national security tariffs and existing Section 301 tariffs would remain in place. He will also impose a new, temporary 10% global tariff under Section 122, which will remain in place for 150 days.
“Therefore, effective immediately, all national security tariffs under Section 232 and existing Section 301 Tariffs remain fully in place and in full force and effect,” he said. “Today, I will sign an order to impose a 10% global tariff under Section 122 — over and above our normal tariffs already being charged. We’re also initiating several Section 301 and other investigations to protect our country from unfair trading practices of other countries and companies.”
The ruling leaves uncertainty over refunds to businesses that paid the invalidated tariffs, which could total as much as $170 billion, which is more than half of the revenue collected under Trump’s emergency tariffs. Trump expressed confidence the administration would find alternative measures to maintain U.S. trade protections. “We’ll figure something out if we don’t win, but we should win,” he said during a Jan. 13 visit to Detroit.
Trump criticized the Supreme Court justices following the decision, describing the ruling as unpatriotic. He upheld that the broader tariff program is a tool to boost U.S. manufacturing and attract foreign investment.
The Supreme Court decision affects billions in past duties, but Trump indicated that the administration will continue to use other authorities, including Section 232 of the Trade Expansion Act of 1962 and Section 301 of the Trade Act of 1974, to implement tariffs and counter unfair foreign trade practices.
While the ruling could reduce the U.S. average effective tariff rate by more than half, Trump’s remarks make clear that tariffs will remain central to his trade strategy. He plans to maintain existing duties, introduce a new 10% global levy under Section 122, and pursue additional investigations to protect U.S. industries.
