President Announces 10% Global Tariff Under Section 122 Following Supreme Court IEEPA Decision
The White House announced this afternoon that President Trump will implement a 10% global tariff under Section 122 of the Trade Act of 1974. The announcement follows this morning’s U.S. Supreme Court decision holding that the International Emergency Economic Powers Act, or IEEPA, does not authorize the President to impose tariffs.
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The White House announced this afternoon that President Trump will implement a 10% global tariff under Section 122 of the Trade Act of 1974. The announcement follows this morning’s U.S. Supreme Court decision holding that the International Emergency Economic Powers Act, or IEEPA, does not authorize the President to impose tariffs.
The ruling and the President’s response together mark a significant shift in the legal and operational landscape for U.S. importers.
Supreme Court Strikes Down IEEPA Tariffs
Earlier today, the Supreme Court held that a president cannot impose tariffs under IEEPA. The decision invalidates the statutory basis that had been used to implement certain recent tariff measures.
Notably, the Court did not address what happens to the tariff revenue already collected under IEEPA. Billions of dollars in duties were paid by U.S. importers under those measures.
In his dissent, Justice Kavanaugh emphasized the immediate practical implications, writing:
“But the Court’s decision is likely to generate other serious practical consequences in the near term. One issue will be refunds. Refunds of billions of dollars would have significant consequences for the U.S. Treasury. The Court says nothing today about whether, and if so how, the Government should go about returning the billions of dollars that it has collected from importers.”
As of now, there is no clear guidance regarding refund procedures, timing, or eligibility. Importers should monitor developments closely, particularly with respect to post-entry remedies and potential claims.
New Action: 10% Global Tariff Under Section 122
In response to the Court’s decision, President Trump announced that he will invoke Section 122 of the Trade Act of 1974 to impose a 10% global tariff.
Section 122 authorizes the President to impose temporary import surcharges or other import restrictions to address balance of payments deficits or significant currency concerns. The provision is subject to statutory time limits and reporting requirements to Congress.
While details have not yet been released, the President indicated that the 10% tariff would apply globally. The scope of coverage, effective date, and product-level implementation guidance remain forthcoming.
Section 232 and Section 301 Tariffs Remain in Effect
The President also confirmed that existing Section 232 and Section 301 tariffs will remain in place.
As a result, importers may face a layered tariff environment that could include:
• Section 232 duties on covered products
• Section 301 duties on specified goods
• A newly announced 10% global tariff under Section 122
• Section 301 duties on specified goods
• A newly announced 10% global tariff under Section 122
Companies should model potential cumulative duty exposure across their product lines and supply chains.
Strategic Considerations for Importers
In the near term, importers should focus on two parallel tracks:
First, evaluate potential exposure under the announced Section 122 tariff, including classification accuracy, country of origin determinations, and landed cost impacts.
Second, assess prior entries subject to IEEPA tariffs. Although the Court has not addressed refund mechanics, businesses should preserve documentation and review entry data in anticipation of possible refund processes or post-entry actions.
As federal agencies issue guidance, procedural clarity may emerge regarding how unlawfully collected IEEPA duties will be handled.
What Comes Next
Key questions remain regarding:
• Effective dates and scope of the Section 122 tariff
• Interaction with existing trade remedies
• Administrative procedures related to IEEPA duty refunds
• Interaction with existing trade remedies
• Administrative procedures related to IEEPA duty refunds
We are closely monitoring agency announcements and CBP implementation guidance. Companies impacted by either the new Section 122 measure or the Supreme Court’s ruling should evaluate both compliance exposure and potential recovery opportunities.
For assistance reviewing your import data, modeling tariff impact, or preparing for potential refund actions, contact our team to discuss next steps.