the United StatesMěiguó美国Supreme Courtzuìgāo fǎyuàn最高法院overturned / struck downtuīfān推翻Emergency Powers ActJǐnjí Quánlì Fǎ紧急权力法tariffsguānshuì关税，TrumpTèlǎngpǔ特朗普usingyǐ以Trade Actmàoyì fǎ贸易法new provisionsxīn tiáokuǎn新条款to replaceqǔdài取代。
February 21, 2026 at 12:00 PM
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BusinessUS Supreme Court Strikes Down Emergency Powers Tariffs; Trump Replaces Them Under Trade Act Section 122
The US Supreme Court ruled six to three on February 20th that the president lacks authority under the International Emergency Economic Powers Act to impose import tariffs. Trump immediately invoked Section 122 of the Trade Act, imposing a 15 percent temporary tariff on all global imports.
On February 20, the US Supreme Court ruled 6-3 in the Learning Resources Inc. v. Trump case that the president's conduct of imposing tariffs pursuant to the International Emergency Economic Powers Act violates legal authorization boundaries. Chief Justice Roberts authored the majority opinion, determining that the law's legislative text did not explicitly authorize the executive branch to unilaterally establish import tariffs. Such power must be granted by Congress explicitly. After the ruling, Trump signed an executive order, formally ending all tariffs imposed under the Emergency Economic Powers Act, marking a significant shift in trade policy. Meanwhile, Trump invoked Section 122 of the Trade Act, announcing a uniform temporary tariff of 15 percent on all imported goods worldwide, with a validity period capped at 150 days. Legal experts pointed out that Section 122 authorizes the president to take temporary countermeasures when facing major balance of payments deficits, but its legal framework is more stringent than the Emergency Economic Powers Act, with tariff ceilings at only 15 percent. This judicial ruling was widely regarded as a major check and balance by federal courts against executive power expansion and is one of the most influential trade law rulings in recent decades. Analysts believe that although the new tariff system has a lower overall rate than previous levels, importers and global supply chains will still face considerable uncertainty in the short term. The EU trade commissioner stated that the EU will closely monitor implementation and reserves rights to initiate WTO dispute resolution procedures.
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