A Supreme Court ruling against the administration's tariffs led to a quick response, with a new 15% tariff will be implemented on Tuesday, Feb 24, 2026.
Supreme Court Ruling
On February 20, 2026, the Supreme Court struck down the "Liberation Day" tariffs in a 6-3 decision. The court found that the president lacked the authority under the International Emergency Economic Powers Act (IEEPA) to impose the tariffs. The tariffs included a 10% tariff on all imports and other country-specific measures.
The court applied the "major questions" doctrine, with the majority arguing that IEEPA did not clearly delegate Congress's power over tariffs. Dissenting justices argued that IEEPA does permit tariffs as a tool to regulate imports.
The administration justified the new measure by citing "large and serious balance-of-payments deficits" and the need to address fundamental international payment problems. This 15% tariff is a temporary action under Section 122, which expires after 150 days unless extended by an act of Congress.
Section 122 of the Trade Act of 1974 allows temporary tariffs or quotas to address balance-of-payments deficits. This differs from IEEPA, which is based on broader emergency powers. Experts note that Section 122 offers less flexibility and requires specific findings. The administration is reportedly planning Section 301 investigations for longer-term tariffs after the 150-day period.
Impact
Importers and businesses face immediate 15% duties beginning Tuesday. They may pursue refunds from the previous IEEPA tariffs. These costs could potentially be passed on to consumers.
Legal challenges may arise due to Section 122's time limit and procedural requirements for alternatives. Importers could challenge the new tariffs, though Section 122 has faced fewer court tests than other trade measures. The situation remains fluid, with potential implications for businesses and consumers in Western North Carolina.