The Supreme Court ruled 6-3 that the International Emergency Economic Powers Act does not authorize presidential tariff power, striking down duties that had collected over $160 billion. Within hours, Trump called the majority justices "a disgrace to our nation" and invoked Section 122 of the Trade Act of 1974 to impose a 10% global tariff. By the next day, he'd raised it to 15% — the statutory maximum. The new tariffs are capped at 150 days unless Congress extends them.
How people are responding to the tariff takedown:
1. The Victory Lap (Free Trade Advocates)
This ruling was long overdue.
Consensus is overwhelming. Over 1,500 economists have signed declarations opposing Trump's tariffs. Harvard's Mankiw: economists are "really united in opposition" to trade policy "founded on a variety of very fundamental misconceptions about economics." The Tax Foundation estimated tariffs cost the average household $1,000 in 2025 and were on track for $1,300 in 2026.
It hits lower earners hardest. Tariffs function as a consumption tax. Lower-income households spend a larger share of income on consumer goods. The National Retail Federation called the ruling "much-needed certainty for U.S. businesses."
2. The Workaround (Trump Administration)
The White House didn't pause. It pivoted.
New legal authority, same goal. Section 122 allows tariffs to address "large and serious balance-of-payments deficits." The rate went from 10% to the 15% statutory cap within 24 hours. The administration also directed staff to develop country-specific "reciprocal tariffs" starting in April.
Manufacturing and security framing. The White House says tariffs will "promote domestic manufacturing, protect national security, and substitute for federal income taxes." The administration views tariff policy as non-negotiable regardless of which legal authority survives.
3. The Congressional Reckoning (Oversight Advocates)
A bipartisan group sees this as their moment.
Cantwell-Grassley bill. Senators Cantwell and Grassley introduced legislation requiring 48-hour Congressional notification of pending tariffs with a 60-day approval requirement. The framing is constitutional: trade power belongs to Congress. Four Republican senators — McConnell, Paul, Collins, and Murkowski — voted with Democrats in February to repeal tariffs on Canada. Rand Paul celebrated the ruling, arguing "it is Congress, not the president, that has the constitutional authority to enact taxes and tariffs."
Section 122 is legally shaky too. Trade law experts argue the US balance-of-payments situation doesn't constitute the "large and serious" deficit Section 122 requires. The 150-day clock creates a forcing function for Congressional action either way.
Where This Lands
Economists see vindication. The administration sees a speed bump. Congress sees a constitutional opening it hasn't had in decades. The 150-day clock on Section 122 means someone has to blink — and whether that's the courts again, the White House, or Congress will shape trade policy for years.
Sources
Al Jazeera, "Trump to raise US global tariff to 15%," February 2026, https://www.aljazeera.com/news/2026/2/22/trump-to-raise-us-global-tariff-from-ten-to-fifteen-percent-after-supreme-court-ruling
Yale Budget Lab, "State of U.S. Tariffs," February 2026, https://budgetlab.yale.edu/research/state-us-tariffs-february-20-2026
Tax Foundation, "Trump Tariffs Economic Impact," 2026, https://taxfoundation.org/research/all/federal/trump-tariffs-trade-war/
CNBC, "Democrats celebrate, Republicans fume over Supreme Court tariff ruling," February 2026, https://www.cnbc.com/2026/02/20/congress-scotus-trump-tariffs.html
Fortune, "Trump's plan B also illegal," February 2026, https://fortune.com/2026/02/21/trump-tariffs-section-122-trade-law-trade-deficit-capital-account-surplus-balance-of-payments/
Axios, "Tariff ruling traps GOP leaders," February 2026, https://www.axios.com/2026/02/20/trump-tariffs-congress-republicans-reinstate-scotus
PBS NewsHour, "President Trump increases global tariffs to 15%," February 2026, https://www.pbs.org/newshour/economy/president-trump-increases-global-tariffs-to-15-after-supreme-court-decision
Reason, "Over 1,500 economists agree Trump's tariffs are terrible," April 2025, https://reason.com/2025/04/24/over-1500-economists-agree-trumps-tariffs-are-terrible/