Dylan Moroses
March 4, 2026
Trump Imposes Maximum Tariff After Supreme Court Rebuke

8 min
AI-made summary
- • The U.S
- Supreme Court ruled 6-3 that the International Emergency Economic Powers Act does not authorize the president to impose tariffs
- • Following the decision, President Trump imposed a temporary global tariff under Section 122 of the Trade Act of 1974, initially set at 10% and later raised to 15%
- • The Section 122 tariff exempts certain goods, including those with specific sectoral duties and items not widely available domestically, such as food, books, and textiles
- • The Supreme Court vacated and remanded a related case, confirming the Court of International Trade as the proper venue for IEEPA tariff challenges
- • The Trump administration announced plans to use Section 232 and Section 301 authorities for future tariff actions, with new investigations to be initiated.
President Donald Trump imposed a temporary global tariff with several exemptions hours after the U.S. Supreme Court struck down tariffs imposed under the International Economic Emergency Powers Act, then announced that he would increase the duty to the 15% maximum.
The Supreme Court's 6-3 opinion held that the International Emergency Economic Powers Act does not grant President Donald Trump "the independent power to impose tariffs on imports from any country, of any product, at any rate, for any amount of time." (iStock.com/wildpixel) Trump signed the order Friday evening, setting a 10% duty to take effect from Feb. 24 to July 24 under Section 122 of the Trade Act of 1974. Under this rule, the president can issue a baseline tariff of up to 15% on all countries for a maximum of 150 days unless Congress grants an extension.
Numerous categories of goods are excluded from the Section 122 tariff, including any imports subject to specific sectoral duties, as well as a list of goods not largely available domestically, among them food, books and textiles, according to a fact sheet provided by the White House.
On Saturday, Trump said on Truth Social he would immediately increase the Section 122 tariff to the 15% statutory maximum.
Trump slammed the justices during a news conference Friday when he announced his move to invoke Section 122, and he posted additional criticisms on Truth Social just hours after the justices' ruling, calling it "deeply disappointing!"
He added that in addition to the Section 122 tariff action, his administration will initiate new investigations under Section 301 of the Trade Act, which allows tariff actions in response to countries' unfair trading practices.
Trump also suggested in his social media post that the ruling makes the executive branch's tariff authority "more powerful and crystal clear, rather than less" in solidifying the use of other statutory authorities to impose tariffs.
The Supreme Court's 6-3 majority ruling, issued Friday morning, upheld lower court actions that deemed unlawful tariffs that the president had imposed on countries across the world under the IEEPA. The U.S. Constitution gives the power to impose taxes and duties to Congress, while the executive branch is afforded no such similar power, particularly during peacetime, Chief Justice John Roberts wrote in the opinion.
The government relied on the words "regulate" and "importation" in the statute to justify Trump's broad use of the IEEPA to impose tariffs, but the majority of the court did not support that argument.
Trump "asserts the independent power to impose tariffs on imports from any country, of any product, at any rate, for any amount of time," Justice Roberts wrote.
"Those words cannot bear such weight," he wrote.
Furthermore, the IEEPA explicitly details several economic powers that the statute authorizes the president to take in response to international emergency, including sanctions and asset freezes, but it makes no mention of tariffs or duties.
"That omission is notable in light of the significant but specific powers Congress did go to the trouble of naming," Justice Roberts wrote in the opinion. "It stands to reason that had Congress intended to convey the distinct and extraordinary power to impose tariffs, it would have done so expressly — as it consistently has in other tariff statutes."
The ruling opinion applied the major questions doctrine, which generally says large-scale regulatory initiatives that have broad effects can't be grounded in vague, minor or obscure provisions of law without clear congressional authorization.
Justice Roberts found insufficient the arguments that were raised against applying the doctrine including its application to a matter of foreign affairs, of which the president has unique discretion, and in a matter of a national emergency.
Those arguments were raised by the government and relied on by the lead dissenting opinion, penned by Justice Brett Kavanaugh. According to Justice Kavanaugh's dissent, the language in the IEEPA should be construed broadly to include tariff authority because the statute, although ambiguous on that matter, addresses a significant major question in the form of international emergency powers.
"The sole legal question here is whether, under IEEPA, tariffs are a means to 'regulate ... importation,'" Justice Kavanaugh wrote. "Statutory text, history, and precedent demonstrate that the answer is clearly yes: Like quotas and embargoes, tariffs are a traditional and common tool to regulate importation."
The majority opinion said that kind of interpretation put forth by the government and Justice Kavanaugh would run afoul of constitutional principles, and that Trump is unable to identify any congressional delegation that would afford him the powers he has sought under the IEEPA.
"There is no major questions exception to the major questions doctrine," Justice Roberts wrote.
Justices Amy Coney Barrett and Neil Gorsuch wrote concurring opinions to the majority judgment offering their perspectives on how the major questions doctrine should apply to the case.
Another concurrence, written by Justice Elena Kagan and joined by Justices Sonia Sotomayor and Ketanji Brown Jackson, offered perspective as to why the doctrine shouldn't apply when the statutory language and context is clear that the IEEPA doesn't include authority to impose tariffs.
A concurring opinion by Justice Jackson also supported the idea that applying the major questions doctrine is unnecessary when the statutory language and legislative history make clear the IEEPA wasn't intended to authorize tariffs.
At the Supreme Court, the government was looking to reverse a Federal Circuit ruling in August that largely affirmed a U.S. Court of International Trade judgment deeming certain tariffs under the IEEPA unlawful in a consolidated case challenging the tariffs raised by several small businesses led by V.O.S. Selections Inc. and a dozen states. The government is also arguing that the CIT is the proper venue — as opposed to the federal district courts — for matters involving tariffs imposed under the IEEPA in a case brought by Illinois-based toy-makers Learning Resources Inc. and hand2mind Inc.
The Supreme Court vacated the ruling in the Learning Resources case Friday and remanded it back to the district court with instructions to dismiss the suit for lack of subject matter jurisdiction, finding the CIT to be the proper venue for suits challenging the tariffs imposed under the IEEPA.
The parties challenged the tariffs placed worldwide as part of a national emergency that Trump declared under the IEEPA in April over persistent U.S. trade deficits. The parties have also challenged another set of tariffs under the IEEPA on Chinese, Mexican and Canadian goods in response to a national emergency declared over illegal fentanyl entering the U.S.
During oral arguments in November, several Supreme Court justices appeared skeptical of the government's arguments seeking to salvage Trump's emergency tariffs. Justices including Justice Roberts found it difficult to constitutionally sever the revenue-raising components of the tariffs Trump has imposed under the IEEPA from their regulatory effects.
In prepared remarks before the Economic Club of Dallas, Treasury Secretary Scott Bessent confirmed that the Trump administration would replace the tariffs imposed under the IEEPA with measures under different statutory authorities.
"We will be leveraging Section 232 and Section 301 tariff authorities that have been validated through thousands of legal challenges," Bessent said. "Treasury's estimates show that the use of Section 122 authority, combined with potentially enhanced Section 232 and Section 301 tariffs, will result in virtually unchanged tariff revenue in 2026."
U.S. Trade Representative Jamieson Greer said during Friday's news conference with Trump that Section 301 investigations are "incredibly legally durable," and details about future inquiries under that authority would be unveiled in the days and weeks to come.
Oregon Attorney General Dan Rayfield, who led the legal effort on behalf of the states challenging the IEEPA tariffs, said in a statement that the ruling would help lower costs for Americans, who have borne the brunt of the tariff increases Trump has imposed. He thanked Oregon Deputy Attorney General Benjamin Gutman for arguing the case for the states.
"Today, the Supreme Court made it clear that no president gets to levy taxes on Americans disguised as tariffs," Rayfield said. "At a time when we should all be working together to do everything in our power to keep the cost of living down for working families, the president tried to sidestep Congress to increase prices on groceries, utilities, and basic everyday necessities."
Neal Katyal at Milbank LLP, who argued on behalf of the small businesses during the oral arguments, issued a statement following the ruling.
"Today, the U.S. Supreme Court stood up for the rule of law and Americans everywhere," Katyal said. "Its message was simple: Presidents are powerful, but our Constitution is more powerful still. In America, only Congress can impose taxes on the American people."
Katyal thanked the Liberty Justice Center in his statement, the nonprofit firm that led the V.O.S. Selections case. Sara Albrecht, the center's chair, said that the justices' ruling striking down the tariffs leaves more work to be done.
"The Liberty Justice Center's work is just beginning," she said. "We intend to help small businesses navigate the refund process, including developing a centralized database, information portal, and referral network to connect affected companies with qualified attorneys to pursue potential refund claims."
The toy-makers are represented by Pratik A. Shah, James E. Tysse, Matthew R. Nicely, Daniel M. Witkowski, Kristen E. Loveland and Margaret O. Rusconi of Akin Gump Strauss Hauer & Feld LLP.
The businesses are represented by Neal Kumar Katyal, Colleen E. Roh Sinzdak, Ezra P. Louvis and Samantha K. Ilagan of Milbank LLP, Michael W. McConnell, Steffen N. Johnson and Paul N. Harold of Wilson Sonsini Goodrich & Rosati PC, Jeffrey M. Schwab, Reilly Stephens and James McQuaid of the Liberty Justice Center and Ilya Somin of George Mason University's Antonin Scalia Law School.
The states are represented by their attorneys general.
The government is represented by D. John Sauer and by Brett A. Shumate, Sarah M. Harris, Sopan Joshi, Mark R. Freeman, Michael S. Raab, Brad Hinshelwood, Daniel Winik and Sophia Shams of the U.S. Department of Justice's Civil Division.
The cases are Learning Resources Inc. et al. v. Trump et al., case number 24-1287, and Trump et al. v. V.O.S. Selections Inc. et al., case number 25-250, in the Supreme Court of the United States.
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