General
The move came in the wake of a Supreme Court ruling that dealt a major blow to the administration’s earlier trade policy. In a 6–3 decision, the justices upheld a lower court’s finding that Trump had improperly relied on the International Emergency Economic Powers Act (IEEPA) to justify his so-called “Liberty Day” tariffs.
The Court determined that the statute did not grant the president authority to impose the broad duties in question. However, tariffs introduced under other legal frameworks — including those targeting steel, aluminium and automobiles — remain untouched.
The president reacted angrily, criticising the majority opinion as misguided and unpatriotic, and directing sharp remarks at several justices, including some he had nominated.
Within hours of the ruling, Trump turned to a different legal instrument: Section 122 of the Trade Act of 1974. Initially setting a 10 per cent global import surcharge, he quickly increased it to the maximum 15 per cent allowed under the provision.
The new tariff is scheduled to take effect on 24 February 2026 and can remain in place for up to 150 days without congressional approval. Any extension would require Congress's backing — an uncertain prospect given recent resistance in the House of Representatives to other proposed trade penalties.
Meanwhile, uncertainty surrounds the fate of revenues already collected under the invalidated tariffs. Estimates suggest potential refunds could total between $130 billion and $175 billion. With no automatic repayment system in place and more than 1,000 importers pursuing legal claims, businesses face the prospect of prolonged court battles.
In London, officials are assessing the implications. The UK recently secured a reduced 10 per cent tariff rate on most exports to the US and says it expects to preserve its preferential trading status amid the shifting landscape, but is seeking clarification from Washington.
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