Next Steps for Tariffs & Other Avenues for Trump After SCOTUS Shuts Down IEEPA

• The Supreme Court's 6-3 decision ruled that the International Emergency Economic Powers Act (IEEPA) of 1977 does not authorize the president to impose tariffs broadly.
• President Trump called the decision 'deeply disappointing' and announced he would sign an executive order imposing a new 10% global tariff using Section 122 of the Trade Act of 1974.
• Section 122 has never been used in this manner before and was not designed to address trade deficits, raising questions about its legal standing and potential court challenges.
• The ruling did not address whether tariffs already paid under IEEPA will be refunded, leading to anticipated demands for refunds in lower courts and a potentially 'messy' process.

The Supreme Court ruled against President Trump's broad use of the IEEPA for tariffs, a decision described as 'momentous' but not entirely unexpected. Trump responded by announcing a new 10% global tariff using a different, previously unused legal tool (Section 122 of the Trade Act of 1974). This creates new uncertainties regarding its application and potential legal challenges, while the issue of refunds for past tariffs remains unresolved.