U.S. Tariffs move to 10% after Supreme Court IEEPA curb

Legal under Trade Act Section 122, limited to 150 days

President Trump signed a new measure imposing a 10% global tariff on imports from all countries. The action shifts tariff authority to Section 122 of the Trade Act of 1974.

The pivot follows a 6–3 supreme court ruling that invalidated earlier tariffs imposed under the International Emergency Economic Powers Act (IEEPA), according to the Associated Press. The Court held IEEPA does not authorize broad peacetime tariffs without clear congressional approval.

Section 122 permits temporary import surcharges of up to 15% in balance‑of‑payments emergencies, but it is time‑limited to 150 days, as reported by Business Insider. Any extension would likely require additional legal justification or congressional action.

Why this 10% tariff matters after the Supreme Court ruling

Section 122 gives the administration a narrower, time‑bound tool compared with the invalidated IEEPA tariffs, but the 10% global tariff is still broad in coverage. The order reportedly includes exemptions for specific goods and countries, shaping uneven impacts across sectors.

Analysts warn of cost pass‑through to consumers and businesses, with inflation and supply‑chain pressures likely while the measure is in force, based on research from the American Action Forum. The intensity will depend on coverage, carve‑outs, and any foreign responses.

“Small and midsize businesses have faced significant cost increases and supply chain disruptions,” said Neil Bradley, executive vice president at the U.S. Chamber of Commerce. He also urged rapid refunds where prior tariffs were struck down.

The baseline 10% applies to a wide set of imports, with carve‑outs for certain products and countries, as reported by The Hill. Importers will need to rely on official notices to confirm scope.

Coverage will track Harmonized Tariff Schedule (HTS) classifications applied at customs. Compliance will hinge on accurate HTS coding, Federal Register notices detailing any exclusions, and trade guidance issued by the U.S. Trade Representative.

With IEEPA‑based tariffs invalidated by the Supreme Court, refund processes are expected but will depend on implementing instructions. Importers should anticipate timing, documentation, and procedural requirements before any disbursements occur.

The new global tariff is distinct from other statutory tariff programs. Existing, unrelated duties can remain in effect unless separately modified by law or subsequent agency action.

What could change next: costs, policy, and retaliation

Business cost exposure and small-business relief or exclusion processes

Sectors deeply integrated into global supply chains face higher exposure, particularly where domestic substitutes are limited. Economist Brad Setser has warned of short‑run recession risks if costs tighten simultaneously across key import‑dependent industries, as reported by The Washington Post.

Business groups have pushed for transparent exclusion processes to shield smaller firms that lack the capital to absorb tariff shocks, as reported by CNBC. The breadth and speed of any exclusion pathway could materially shape near‑term costs.

Because Section 122 is capped at 150 days, companies face a compressed planning horizon. Temporary relief mechanisms would likely be time‑boxed and may require reapplication if the policy evolves.

Congressional action, litigation risks, and allied retaliation watchpoints

Some House Republicans want Congress to codify elements of the administration’s trade approach to minimize legal uncertainty, according to Axios. Others emphasize that tariff policy belongs squarely with the legislative branch.

A large bipartisan group of lawmakers previously filed an amicus brief arguing the Constitution vests tariff‑setting authority in Congress, as reported by SJO Daily. That position underpinned the Court’s skepticism of broad unilateral measures.

Further litigation over the scope, duration, or prerequisites of Section 122 is possible; the broader shift invites legal, economic, and political pushback, as reported by The Guardian. The outcomes remain uncertain until courts or Congress act.

Foreign retaliation is a key watchpoint. The Budget Lab estimated the effects of U.S. tariffs and foreign countermeasures implemented in 2025, highlighting how reciprocal actions can amplify cost and trade‑flow impacts.

At the time of this writing, Apple Inc. shares traded around $264.28, up 3.32%, based on Nasdaq real‑time price data. market levels may reflect evolving expectations about trade policy and macro risk.

FAQ about 10% global tariff

Which products and countries are exempt from the 10% tariff, and how will customs classify covered goods?

Some goods and countries are exempt, as reported by The Hill. Customs will apply HTS classifications. Watch Federal Register notices and USTR guidance for definitive scope.

Will importers receive refunds for tariffs collected under the struck-down IEEPA measures, and how do they claim them?

Refunds are expected following the Supreme Court ruling. Timing and procedures depend on forthcoming agency instructions. Importers should follow official guidance once published.