Refunds for tariffs and Trump's new 10% levies - what to know
BBC World
February 21, 2026
AI-Generated Deep Dive Summary
The U.S. Supreme Court has ruled that President Donald Trump exceeded his authority by imposing global tariffs under the International Emergency Economic Powers Act (IEEPA) in 2018. The court’s 6-3 decision found that only Congress, not the president, can levy new taxes, and that Trump’s use of IEEPA to raise revenue for tariffs was unconstitutional. This ruling leaves open the possibility of refunds for consumers and businesses who paid the estimated $130 billion in tariffs over the past five years.
In response to the court’s decision, Trump quickly signed a proclamation imposing a 10% global tariff on almost all imports under Section 122 of the Trade Act of 1974. This section allows the president to impose temporary tariffs up to 15%, but Congress must act within 150 days to extend or modify them. The move bypasses the IEEPA issue, but legal experts warn that Trump could potentially declare a new emergency after the 150-day period to reinstate the tariffs.
The Supreme Court’s ruling does not affect other tariffs Trump implemented under Section 23
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Originally published on BBC World on 2/21/2026