Trump 15% Section 122 global tariff takes effect after IEEPA court defeat

On February 20, 2026, the Supreme Court struck down Trump's IEEPA-based tariffs in a 6-3 ruling in Trump v. V.O.S. Selections, holding that the International Emergency Economic Powers Act does not authorize the president to impose tariffs. Within hours, Trump invoked Section 122 of the Trade Act of 1974, which allows surcharges of up to 15% on countries with large trade deficits, and the new tariff took effect at 12:01 a.m. on February 24, 2026, covering goods entering the United States through July 24, 2026.