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Supreme Court Voids Trump’s Broad Tariffs as White House Imposes Temporary 10% Global Levy

The decision reasserts Congress’s control over tariff power, forcing a time‑limited workaround under a 1974 trade law with likely refund litigation ahead.

Overview

  • The Court ruled 6–3 that the IEEPA does not clearly authorize blanket “reciprocal” tariffs, leaving sector‑specific measures on steel, aluminum and autos largely intact.
  • Trump signed a decree for a 10% tariff on most imports effective February 24 for 150 days, with exemptions including pharmaceuticals and goods qualifying under the USMexicoCanada pact.
  • The temporary rate also applies to partners with recent agreements such as the European Union and Japan, and it does not replace existing sectoral duties or USMCA‑protected trade.
  • Importers are preparing refund claims after the invalidation of broad tariffs, with analysts estimating $130–$170 billion at stake and firms such as Costco and Toyota’s U.S. unit already suing.
  • Stocks gained as Democrats and business groups welcomed the ruling and the president denounced it, while the administration weighs other legal routes under 1962, 1974 and 1930 trade statutes.