Trump’s New Tariffs Are Also Illegal

Foreign Policy

by Stan Veuger and Clark Packard

February 26, 2026

AI-Generated Deep Dive Summary

The U.S. Supreme Court recently ruled that President Donald Trump’s tariffs, implemented under the International Emergency Economic Powers Act (IEEPA), were illegal. This decision invalidated several of Trump’s signature tariff policies, including those targeting fentanyl imports from Canada, China, and Mexico, as well as tariffs on India and Brazil. The court found that these measures unlawfully imposed financial burdens on taxpayers, potentially siphoning off $175 billion over the past year. Despite this ruling, the Trump administration quickly turned to alternative legal tools to impose new tariffs under Section 122 of the Trade Act of 1974, bypassing the procedural requirements that would have made challenges more straightforward. Section 122 allows the president to impose tariffs or quotas only under narrowly defined circumstances related to “fundamental international payments problems.” However, the administration’s interpretation of this section is controversial. They argue it provides authority for broader tariff actions, including those targeting consumer goods and intermediate inputs, which critics argue harm American manufacturers and create economic uncertainty. The administration plans to use this tool temporarily before reverting to Section 232 and Section 301 tariffs, which were previously struck down as unconstitutional under IEEPA. This legal workaround raises concerns about the long-term implications for international trade policy. By sidestepping established legal frameworks, the administration risks setting a precedent for future misuse of trade authority. The tariffs also undermine Trump’s claims of a coherent China strategy and fail to differentiate between friendly and adversarial nations, further complicating U.S. relationships with key allies and adversaries alike. These actions not only erode trust in international trade agreements but also contribute to economic instability by creating distortions in the market and increasing policy uncertainty. The broader significance lies

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Originally published on Foreign Policy on 2/26/2026