Supreme Court Strikes Down IEEPA Tariffs

The Supreme Court issued a 6-3 ruling on February 20 striking down President Trump’s tariffs under IEEPA. This affects, among others, the country-specific reciprocal tariffs and the tariffs against Mexico, Canada, and China to stop the flow of fentanyl. CBP announced it would stop collecting these duties at 12:00 AM Eastern Time on February 24, 2026.

In a press conference later in the day, Trump said that he plans to sign an executive order that would impose a global 10% tariff under Section 122 of the Trade Act of 1974. Section 122 allows the president to address “large and serious” balance-of-payments deficits through import surcharges of up to 15 percent, import quotas, or some combination of the two. These don’t require any investigations, unlike some other sections of the Trade Act.

Trump said these new tariffs would be in addition to any existing tariffs, such as those under Section 232 or Section 301. Critically, tariffs imposed under Section 122 are only valid for up to 150 days unless Congress votes to extend them.

He went on to say he plans to initiate multiple Section 301 reviews to enforce further tariffs. Section 301 grants the power to enforce tariffs on foreign countries due to unfair trading practices. These investigations generally take months to complete and includes a public comment period.

This situation remains fluid, so Scarbrough will continue to update this post as more information becomes available.