President Trump is adding a novel 10 percent tariff on almost all imports into the United States following a Supreme Court ruling that struck down most of the levies imposed by the U.S. government last year.
In executive order signed Friday night, Trump outlined several exceptions, including imports of key minerals, beef and fruit, cars, pharmaceuticals and products from Canada or Mexico. The novel tariffs will come into force on February 24, 2026.
During Friday’s news conference, Trump was elated by the Supreme Court’s decision and resorted to personal attacks, calling the six justices who ruled against his trade policies “a disgrace to our nation.” Responding to a reporter’s question about how two of his judicial nominees, Neil Gorsuch and Amy Coney Barrett, voted to overturn the House, Trump called them “an embarrassment to their families.”
The novel trade policy is based on Art. 122 of the Trade Act of 1974, which allows the president to independently and immediately impose tariffs of up to 15 percent. in the event of “large and severe” trade deficits. These tariffs are only in effect for 150 days unless Congress approves an extension. Like the International Emergency Economic Powers Act (IEEPA), the act has never before been used by a U.S. president in this way.
After the 150-day deadline, Trump will be able to continue implementing Section 122 tariffs. But the administration could also utilize this time to prepare other forms of tariffs, essentially changing the legal justifications to achieve the same regulatory impact, says Gregory Husisian, a partner and litigation attorney at Foley & Lardner LLP, which has helped more than a hundred companies file tariff drawback claims. “[Section 122 tariff] is time-limited, so it will act as a bridge body,” says Husisian.
Meanwhile, the Trump administration could expedite the process of conducting trade investigations based on concerns about national security or unfair trade practices abroad, which are a requirement for tariffs under Sections 301 and 232. “We are also initiating several Section 301 and other investigations to protect our country from unfair trade practices of other countries and companies,” Trump said at the news conference, referring to other tariff options that take longer to kick in.
In a separate order, the administration confirmed that despite the repeal of IEEPA rates, the de minimis exemption, which is used to exempt e-commerce shipments valued under $800 from tax, remains suspended. The end of de minimis last year resulted in a massive backlog of shipments at the U.S. border, as well as price increases on budget shopping platforms.
At the press conference, Trump did not specify what exactly would happen to companies seeking tariff refunds. The Supreme Court’s ruling did not specify whether or how the tariffs should be refunded. Responding to a reporter’s question on the subject, Trump said he expected the matter to be resolved in court.
Experts tell WIRED they expect the refund process to be complicated and lengthy because it could require companies to file complaints and calculate the amount they believe they are entitled to. The government could then also withdraw the calculated amount. The process can take from several months to over two years.
The Supreme Court’s decision specified that IEEPA gives the president significant emergency powers, but noted that these powers do not extend to taxes. Trump repeatedly distorted the ruling at a news conference: “But now the court has given me the unquestionable right to prohibit all kinds of things from entering our country, to destroy foreign countries… but not the right to charge fees,” he said. “How crazy is this?”
At times, the news conference devolved into a tirade on topics unrelated to tariffs, such as how the president thinks Europe is too woke or how much he hates Federal Reserve Chairman Jerome Powell. While talking about how the court interprets the literal meaning of IEEPA, Trump suddenly started bragging about his reading comprehension skills. “I read the paragraphs. I read very well. Great understanding,” he said.