Trump shifts tariffs after Supreme Court limits emergency powers

The Supreme Court blocked President Trump from using the International Emergency Economic Powers Act (IEEPA) to impose tariffs, saying IEEPA—meant for emergencies—does not authorize taxes such as tariffs and that only Congress has clear authority to impose them.

The decision stopped the specific tariffs imposed under that emergency power but did not ban tariffs in general. Mr. Trump responded by saying existing Section 232 and Section 301 tariffs will remain in place and by announcing a new 10% global tariff under Section 122 of the Trade Act of 1974.

He described the move as replacing the banned emergency tariffs with measures authorized under other laws and has launched investigations that could lead to additional tariffs. Markets initially reacted positively to the court’s clarification, as clearer legal rules reduced some uncertainty and lifted stocks and crypto.

United States

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