This morning, the U.S. Supreme Court issued a decision finding that the Trump Administration’s use of the International Emergency Economic Powers Act(IEEPA) did not provide authority to impose broad tariffs of unspecified scope and duration, effectively striking down a large share of the “reciprocal” tariffs and certain duties tied to fentanyl enforcement that had been imposed on multiple trading partners.
The ruling impacts a significant portion of the Administration’s tariff actions and raises questions around timing, potential refunds, and retroactive implications, which stakeholders are continuing to review. In response, President Trump announced new temporary across-the-board tariffs using separate authority under Section 122 of the Trade Act of 1974, initially set at 10% and later signaling an increase to 15%, which can remain in place for up to 150 days. These temporary tariffs include exemptions for certain agricultural goods, USMCA-covered products, and items already subject to Section 232 duties. At the same time, U.S. Trade Representative Jameson Greer announced plans to open new investigations under Section 301 that could lead to additional tariffs, underscoring continued uncertainty around trade policy and the potential impact on existing trade agreements.
We will continue to update our members on the fallout of this landmark ruling as additional information becomes available.
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