Trump’s Tariff Fight Isn’t Over Yet

Foreign Policy

by Alexandra Sharp

February 20, 2026

AI-Generated Deep Dive Summary

The U.S. Supreme Court has ruled that President Donald Trump exceeded his executive authority when he imposed sweeping tariffs on most of America’s trading partners under the International Emergency Economic Powers Act (IEEPA). The court’s 6-3 decision, led by Chief Justice John Roberts, found that IEEPA does not grant the president the power to impose unlimited tariffs. In response, Trump has announced plans to reimpose a 10% global tariff using Section 122 of the Trade Act of 1974, which allows for up-to-15% tariffs on imports deemed necessary to address “large and serious” balance-of-payments deficits. However, these tariffs are subject to stricter limitations, including a 150-day window before requiring congressional approval. The switch to Section 122 marks Trump’s latest effort to circumvent the court’s ruling and continue his aggressive trade policies. While IEEPA allowed for broader authority, Section 122 is more constrained, limiting both the scope and duration of potential tariffs. This shift raises questions about how it will impact ongoing trade negotiations, particularly with the European Union (EU), which had been working on a deal to eliminate most tariffs between the U.S. and EU member states. The EU has already postponed ratification of its trade agreement in response to the court’s ruling, while the UK and Canada have expressed concern over the implications for their own trade deals. The legal battle over tariffs also has significant financial stakes. The court’s decision could force the U.S. Treasury to refund billions of dollars collected under IEEPA tariffs, a process that Justice Brett Kavanaugh described as a potential “mess.” Meanwhile, Trump’s move to reimpose tariffs under Section 122 has sparked criticism from allies and trade experts, who argue that it undermines

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Originally published on Foreign Policy on 2/20/2026