The Tariffs Will Be Back
The Atlantic
February 20, 2026
AI-Generated Deep Dive Summary
The Trump administration’s sweeping global tariffs have been dealt a significant blow by the Supreme Court, which ruled that the International Emergency Economic Powers Act (IEEPA) does not authorize the president to impose tariffs. However, this does not mark the end of Trump’s trade agenda. The administration has already begun implementing alternative strategies to restore the tariffs, ensuring his signature protectionist policies remain a key part of his legacy.
The court’s decision centered on IEEPA, a 1977 law meant for addressing national emergencies through economic measures. The Trump administration had interpreted this statute as granting broad authority to impose tariffs without congressional approval, justifying actions like the tariffs on Mexico, Canada, and China. However, the justices found that these tariffs exceeded the scope of IEEPA, particularly since many were based on arbitrary levels or unrelated to genuine emergencies.
To circumvent this setback, the administration is turning to Section 122 of the Trade Act of 1974. This provision allows the president to impose up to 15% tariffs for 150 days to address balance-of-payment deficits. While this offers a temporary workaround, it is likely intended as a bridge while the administration finalizes Phase Two: leveraging Section 301’s authority to levy permanent tariffs in response to unfair trade practices. This process requires navigating bureaucratic hurdles but could provide Trump with long-term tariff powers.
The significance of this legal battle lies in its implications for presidential authority and US trade policy. While the court has limited Trump’s use of IEEPA, his administration is determined to preserve its protectionist agenda through alternative legal pathways. The outcome will shape not only the future of US trade relationships but also set a precedent for how future presidents approach international commerce.
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Originally published on The Atlantic on 2/20/2026