President moves quickly to replace tariffs struck down by Supreme Court
President Donald Trump signed an order imposing a 10% tariff on imports to replace duties the Supreme Court recently found unlawful. The tariff kicks in on February 24 and will remain in place for 150 days while the administration pursues alternative legal routes. Officials say the move aims to restore revenue and keep policy options open after the court curtailed the president’s emergency authority under the International Emergency Economic Powers Act (IEEPA).
What the new order does — and how it differs from the previous one
– The new measure applies a uniform 10% charge to goods entering the United States. The White House calls it temporary and narrowly tailored.
– Unlike the earlier tariffs, which rested explicitly on emergency powers under the IEEPA, this order relies on a different statutory footing designed to avoid the legal limits the court imposed.
– Administration officials and trade lawyers acknowledge the approach is meant to be administratively distinct, but they also expect legal challenges.
A swift legal pivot
The Supreme Court ruling restricted the president’s ability to use the IEEPA to impose broad import duties, prompting the rapid policy response. Administration lawyers are exploring alternate statutory authorities and regulatory paths. Trade groups and members of Congress have voiced concerns — some worry about economic fallout, others about separation-of-powers questions. Short-term tariffs can alter prices and supply-chain decisions quickly, but they frequently spark litigation and political backlash.
Which statute now underpins the tariffs
Officials point to Section 122 of the Trade Act of 1974 as the immediate authority for the 10% levy. That provision allows temporary duties for a limited period (Section 122 permits up to 15% in some circumstances), and the administration says it will also use investigations under Sections 301 and 232 for more targeted, sector-specific remedies. Together, these tools give policymakers a menu of options: a broad, time-limited charge now and potentially more tailored actions later.
Why this route?
The administration argues that the chosen statutes provide clearer statutory boundaries and established procedures that could withstand quicker judicial review than broadly framed emergency authority. Critics counter that fragmenting trade policy across multiple legal tracks could complicate outcomes and invite fresh court fights. Trade lawyers expect new litigation to focus on statutory interpretation and procedural compliance.
Legal and political fallout ahead
Stakeholders are likely to move fast. Expect court filings challenging the new authority and congressional oversight hearings testing both process and scope. Industry associations will press for exemptions or expedited reviews; affected trading partners may pursue consultations or retaliatory steps. How courts rule in coming months will shape whether this strategy becomes a durable template for future trade actions.
Uncertainty over refunds and financial stakes
One immediate headache: companies hit by the earlier global charge want clarity on refunds. Treasury and Customs must decide whether collections under the previous emergency-based tariffs are still lawful now that the legal basis has shifted. Independent estimates put potentially refundable amounts in the ballpark of $170–175 billion. The Supreme Court left repayment questions to lower courts, meaning prolonged litigation could determine whether importers get reimbursed.
Industry impact and business reaction
Auto and metals industries face the clearest exposure. Manufacturers that rely on imported inputs are watching enforcement notices and compliance guidance closely. Many firms are already running contingency plans: modeling scenarios for sustained duties, partial refunds, or full reimbursement depending on court outcomes. Financial officers are revisiting hedges and working-capital forecasts as companies brace for possible cash-flow strains.
Market and macro signals
Markets reacted with short-term volatility after the policy shift: stock indexes swung and Treasury yields adjusted modestly. Longer term, analysts warn prolonged litigation could weigh on investment and hiring in affected sectors. Official data show growth softening — 2.2% in 2026 versus 2.8% the year before — and a still-elevated trade deficit, conditions that make tariff policy a sensitive lever for both political and economic actors.
Domestic and international political responses
Domestically, politicians split predictably. Supporters framed the move as essential to protecting strategic industries; opponents criticized the disruption to exporters and manufacturers that depend on imports. Abroad, trading partners issued cautious statements and are assessing exposure. Some may seek consultations under trade frameworks; others might contemplate retaliatory measures if the new tariffs become permanent or if negotiated exemptions are reversed.
What the new order does — and how it differs from the previous one
– The new measure applies a uniform 10% charge to goods entering the United States. The White House calls it temporary and narrowly tailored.
– Unlike the earlier tariffs, which rested explicitly on emergency powers under the IEEPA, this order relies on a different statutory footing designed to avoid the legal limits the court imposed.
– Administration officials and trade lawyers acknowledge the approach is meant to be administratively distinct, but they also expect legal challenges.0
What the new order does — and how it differs from the previous one
– The new measure applies a uniform 10% charge to goods entering the United States. The White House calls it temporary and narrowly tailored.
– Unlike the earlier tariffs, which rested explicitly on emergency powers under the IEEPA, this order relies on a different statutory footing designed to avoid the legal limits the court imposed.
– Administration officials and trade lawyers acknowledge the approach is meant to be administratively distinct, but they also expect legal challenges.1