US Supreme Court Overturns Trump’s IEEPA Tariffs; President Responds with New 15% Duties Under Trade Act

On Friday, February 20, 2026, the United States Supreme Court issued a monumental 6-3 decision, ruling that the broad import tariffs implemented by President Donald Trump’s administration under the International Emergency Economic Powers Act (IEEPA) exceeded the scope of executive authority. The justices, citing constitutional mandates, affirmed that the power to levy taxes and duties is a prerogative reserved for Congress. This verdict represents one of the most consequential legal defeats for the current administration regarding its aggressive trade agenda.

President Trump moved swiftly to counter the court's decision on the very same day, transitioning to an alternative legal mechanism to keep his trade policies in motion. On Friday, he announced a replacement tariff of 10% on imports from all foreign nations, invoking Section 122 of the Trade Act of 1974. By Saturday, February 21, 2026, the administration increased this rate to 15%, which the President characterized as a measure that is "fully authorized and legally vetted." Section 122, a provision that had remained unused by any previous president, allows for the imposition of temporary import surcharges for a period of up to 150 days to rectify balance-of-payments deficits.

While the sudden pivot in U.S. trade policy sparked significant concern among global leaders and various industrial organizations, the cryptocurrency market displayed a surprising level of resilience. On Sunday, February 22, 2026, the price of Bitcoin remained stable, consolidating near the $68,000 level after a brief period of volatility. Financial analysts noted that the market had largely priced in the possibility of the White House utilizing alternative legal strategies, which mitigated any potential shock. However, sentiment indicators told a different story, as the Fear & Greed Index dropped to a value of 9, signaling "extreme retail fear" among the general public.

The long-term macroeconomic implications of these new measures are now being closely examined by academic and financial institutions. Data from the Yale Budget Lab suggests that the transition from the previous system to the new 15% tariff could impose an additional financial burden of $1,315 per year on the average American household. At the same time, trade experts based in Hong Kong expressed deep concerns that the administration's unpredictable approach could trigger widespread chaos in the global commerce landscape.

In response to the judicial ruling, U.S. Customs and Border Protection (CBP) announced that it would begin the process of deactivating all IEEPA-related tariff codes starting on February 24. Despite the ongoing legal debates and the atmosphere of uncertainty surrounding future trade barriers, some regional stability remains. Under the terms of the USMCA agreement, goods imported from Canada and Mexico have been officially exempted from the new 15% tariffs, shielding these key North American partners from the immediate impact of the President's latest executive actions.