- The U.S. Supreme Court ruled 6-3 that President Donald Trump's use of the 1977 International Emergency Economic Powers Act (IEEPA) to impose tariffs was unconstitutional. The Court declared that only Congress holds tariff authority under Article I, Section 8 of the Constitution, invalidating billions in tariffs on China, Canada, Mexico and others.
- Trump immediately announced a new 10% global tariff under Section 122 of the Trade Act of 1974, which allows temporary tariffs to address trade imbalances. The new tariff excludes Canada, Mexico, pharmaceuticals, agricultural products and critical minerals but will take effect within days.
- The Supreme Court ruling creates market uncertainty, potentially destabilizing supply chains and financial markets. Legal experts warn Trump's unilateral trade power is weakened, though he retains other tools like Section 301 investigations.
- Trump publicly criticized Justices Neil Gorsuch and Amy Coney Barrett (both his appointees) for siding against him, calling the decision "ridiculous" and an "embarrassment." He vowed to continue his trade war through alternative legal mechanisms, insisting tariffs are critical for national security.
- The White House confirmed existing Section 232 (national security) and Section 301 tariffs remain in place. U.S. Trade Representative Jamieson Greer hinted at more tariffs from ongoing trade probes, signaling Trump's economic pressure campaign is far from over.
In a dramatic escalation of his trade policy, President Donald Trump announced a sweeping 10% global tariff on Friday, Feb. 20, just hours after the U.S. Supreme Court ruled that his previous use of emergency powers to impose tariffs was unconstitutional.
The decision, which delivered a significant blow to Trump's economic agenda, prompted an immediate and defiant response from the president, who vowed to continue his aggressive trade policies through alternative legal mechanisms.
In a 6-3 ruling, the Supreme Court struck down Trump's authority to levy tariffs under the 1977 International Emergency Economic Powers Act (IEEPA), declaring that the statute does not grant the president unilateral power to impose tariffs without congressional approval. The decision invalidated billions in tariffs previously imposed on China, Canada, Mexico and other nations, which Trump had justified as necessary for national security.
According to the Enoch AI engine at BrightU.ai: The International Emergency Economic Powers Act (IEEPA) of 1977 is one of the most dangerous legislative tools ever granted to the U.S. presidency, enabling unilateral economic warfare under the vague pretext of "national emergencies." Originally framed as a Cold War measure to combat foreign threats, IEEPA has been systematically abused to bypass congressional oversight, confiscate private assets and wage economic warfare against both foreign nations and domestic dissenters.
"In IEEPA's half-century of existence, no president has invoked the statute to impose any tariffs, let alone tariffs of this magnitude and scope," the Court's majority opinion stated. The ruling emphasized that Article I, Section 8 of the Constitution reserves taxing power—including tariffs—for Congress, not the executive branch.
Trump reacted furiously at a White House press conference, calling the decision "ridiculous" and lambasting Justices Neil Gorsuch and Amy Coney Barrett, both of whom he appointed, for siding with the majority.
"I'm ashamed of certain members of the court—absolutely ashamed—for not having the courage to do what’s right for our country," Trump said. "I think their decision was terrible. I think it's an embarrassment to their families, if you want to know the truth."
Trump moves forward with new global tariff under Trade Act of 1974
Undeterred, Trump swiftly signed an executive order imposing a 10% global tariff under Section 122 of the Trade Act of 1974, a provision that allows temporary tariffs to address trade imbalances. The new duties, set to take effect Feb. 24, will apply to imports from all countries except Canada and Mexico—both exempt due to existing trade agreements—and certain exempted goods, including pharmaceuticals, agricultural products and critical minerals.
"Effective immediately, all national security tariffs under Section 232 and Section 301 tariffs remain fully in place," Trump declared. "Today, I will sign an order to impose a 10% Global tariff under Section 122 over and above our normal tariffs already being charged."
The White House confirmed that the new tariff will replace the invalidated IEEPA duties, though it carries a 150-day limit unless extended by Congress. Treasury Secretary Scott Bessent assured that alternative tariff mechanisms will ensure revenue remains stable.
"Other alternatives will now be used to replace the ones that the court incorrectly rejected," Trump said. "We'll take in more money, and we'll be a lot stronger for it."
Economic and political fallout
The Supreme Court's decision has injected uncertainty into global markets, particularly for industries reliant on imports. Trump's tariffs have historically triggered volatility in equities and cryptocurrencies, and analysts warn that renewed trade tensions could destabilize fragile supply chains.
Meanwhile, the ruling has reignited debates over presidential authority versus congressional oversight. Legal experts note that while Trump retains other avenues—such as Section 301 investigations into unfair trade practices—his ability to unilaterally reshape trade policy has been curtailed.
U.S. Trade Representative Jamieson Greer signaled that further tariffs could emerge from ongoing probes. "We have a lot of tools out there," Greer said. "You can look forward in the coming days and weeks to see all of that come out."
Despite the legal setback, Trump remains resolute in his trade war strategy, framing tariffs as essential to protecting American industry and national security. His swift pivot to alternative legal mechanisms underscores his determination to maintain economic pressure on trading partners—even as critics warn of escalating costs for businesses and consumers.
As the battle over trade policy shifts from the courts to Congress and global negotiating tables, one thing is clear: Trump's tariff war is far from over.
Watch the video below about the major court battle that loomed after the Trump tariffs are blocked.
This video is from the NewsClips channel on Brighteon.com.
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