Overview
- The Supreme Court ruled on February 20, 2026 in Learning Resources, Inc. v. Trump that the International Emergency Economic Powers Act does not authorize the president to impose tariffs and vacated the prior IEEPA-based tariff actions.
- Those vacated IEEPA tariffs had collected more than $130 billion before being struck down, which left the administration scrambling to preserve duties and revenue streams.
- Investors reacted quickly to the court decision when Bitcoin jumped roughly 1.7–2% then reversed after the administration announced replacement tariffs under Section 122.
- The White House first invoked Section 122 of the Trade Act to impose temporary global duties that were reported at 10% then raised to 15% and that will expire automatically after a 150-day clock unless Congress extends them.
- By late July the administration announced a broader shift to Section 301 measures that apply roughly 10–12.5% duties to about 60 economies framed around forced-labor claims, a move that expands coverage while lowering rates and creates a narrow window for Congressional action or foreign retaliation.