politics
February 20, 2026
Get Ready for Zombie Tariffs
Even after losing at the Supreme Court, Trump has plenty of ways to reconstruct his trade regime.
TL;DR
- The Supreme Court ruled 6-3 that the International Emergency Economic Powers Act (IEEPA) does not authorize the president to impose tariffs.
- This ruling is a significant setback for Trump's trade agenda but not a fatal one.
- The Trump administration had prepared backup plans using alternative authorities.
- One alternative is Section 122 of the Trade Act of 1974, allowing tariffs of up to 15% for up to 150 days to address balance-of-payment deficits.
- Another alternative is Section 301 of the Trade Act of 1974, which allows for permanent tariffs in response to unfair trade practices after a bureaucratic process.
- Industry-specific tariffs on steel and aluminum, imposed under separate authorities, are not affected by the ruling.
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