Trump Bypasses Supreme Court with New 15% Global Tax After Tariff Defeat
The Supreme Court ruled Trump exceeded his authority using emergency powers for tariffs. Two of his own justices voted against him. His response? A new 15% global tariff under a different law — with a 150-day clock ticking.
The Supreme Court killed Trump's tariffs. He signed new ones within hours using a different law. You're still paying more for everything — but now Congress has to decide in 150 days whether to keep it that way.
On Friday, February 20, 2026, the Supreme Court delivered one of the most consequential rulings of the Trump presidency — and the president's response may have been even more consequential.
In a 6-3 decision, the court ruled that the International Emergency Economic Powers Act (IEEPA) "does not authorize the President to impose tariffs." The ruling struck down the sweeping "reciprocal" import duties that had been a cornerstone of Trump's economic policy.
What made the ruling especially significant: Two justices Trump himself appointed — Neil Gorsuch and Amy Coney Barrett — voted with the majority. This wasn't a partisan split. It was a constitutional line in the sand.
But here's where it gets interesting.
Within hours of the ruling, Trump announced he was signing a new executive order imposing a 10% "global tariff" — this time under Section 122 of the Trade Act of 1974, a different legal authority. By Saturday, he had already raised it to 15%, posting on Truth Social that he was moving to "the fully allowed, and legally tested, 15% level."
“Two justices Trump himself appointed voted against him. This wasn't a partisan split. It was a constitutional line in the sand.”
The move is legally precarious. Section 122 was designed for short-term balance-of-payments emergencies, not as a permanent trade policy tool. Most importantly, it comes with a hard limit: 150 days. After that, Congress must vote to extend the tariffs, or they expire automatically.
So what does this mean for your wallet?
The Yale Budget Lab estimates that the Supreme Court ruling will reduce the average household's tariff burden by roughly half in 2026 — saving about $600 to $800. The Tax Policy Center puts the 10-year savings at $1.4 trillion if the old tariffs aren't replaced.
But Trump's new 15% tariff partially claws that back. Imported electronics, clothing, furniture, appliances, and auto parts will still see price increases. The Yale team estimates a 0.6% rise in overall price levels in the short run — about $800 per average household, $400 for low-income families.
The constitutional question now moves to Congress. Will Republican lawmakers, many of whom privately opposed the tariffs, vote to extend them when the 150-day clock runs out in July? Or will they let them quietly expire?
Follow the money: The tariff chaos has created enormous uncertainty for businesses. Companies that stockpiled imports before the original tariffs took effect are now sitting on inventory they overpaid for. Logistics firms that rerouted supply chains through tariff-exempt countries lost their competitive advantage overnight. And the lobbying industry is already in overdrive — the National Retail Federation, U.S. Chamber of Commerce, and dozens of industry groups are preparing campaigns targeting swing-state senators.
Meanwhile, the industries that benefited from tariff protection — domestic steel, aluminum, and solar panel manufacturers — are scrambling to preserve their advantage. Their trade associations donated $47 million to congressional campaigns in 2025.
The real question isn't whether Trump has the authority to impose tariffs. The Supreme Court just answered that definitively. The real question is whether Congress will reclaim the trade power the Constitution gave it — or hand it right back.
Summary
In a landmark 6-3 decision, the Supreme Court struck down President Trump's sweeping tariffs imposed under the International Emergency Economic Powers Act (IEEPA), ruling he exceeded his constitutional authority. Two Trump-appointed justices — Neil Gorsuch and Amy Coney Barrett — voted with the majority. Within hours, Trump announced a new 10% "global tariff" using Section 122 of the Trade Act of 1974, then raised it to 15% the next day. But there's a catch: Section 122 tariffs can only last 150 days without Congressional approval. The Yale Budget Lab estimates the ruling saves the average household $600-800 compared to the old tariffs, but the new 15% levy still hits consumers on everything from electronics to groceries.
⚡ Key Facts
- Supreme Court ruled 6-3 that IEEPA does not authorize presidential tariffs
- Two Trump-appointed justices (Gorsuch, Barrett) voted with the majority
- Trump signed new 10% global tariff under Section 122 of Trade Act of 1974, raised to 15% next day
- Section 122 tariffs expire after 150 days without Congressional approval (July 2026)
- Yale Budget Lab: ruling saves average household $600-800 vs old tariffs
- New 15% tariff still raises prices ~0.6%, costing avg household ~$800
- Protected industries (steel, aluminum, solar) donated $47M to Congress in 2025
- National Retail Federation and US Chamber of Commerce lobbying against extension
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