Overview
- Following a 6–3 Supreme Court decision that his IEEPA-based tariffs exceeded presidential authority, President Trump replaced the invalidated scheme with a temporary global levy under Section 122 of the Trade Act of 1974.
- After first setting the import tax at 10%, Trump said within a day that he would raise it to the 15% statutory ceiling with immediate effect.
- Section 122 caps tariffs at 15% for roughly five months and any continuation will require congressional approval, setting up a fresh legal and political fight over the scope of executive trade powers.
- The temporary program includes carve-outs reported for USMCA-covered goods and specified sectors such as certain natural resources, passenger and light trucks, and some aerospace components, while the precise start date remains unclear given earlier White House guidance pointing to February 24.
- Importers are preparing refund claims for previously collected duties that could total around $175 billion or more, and major trading partners are planning consultations in response to the new U.S. measures.