Before President Donald Trump's 10% global tariff order, the US Supreme Court ruled at a ratio of 6-3 that the 1977 law, called the International Emergency Economic Power Act (IEEPA) that Mr. Trump relied on, did not allow the president to impose tariffs.
Mr. Trump reacted strongly, accusing the court of being affected by foreign interests. Mr. Trump said he would use a separate authority to impose a 10% uniform tax.
To protect the country, a real president can impose taxes higher than I have previously imposed" - Mr. Trump said, asserting that the ruling gives him "more power".
Since returning to the White House in 2025, President Donald Trump has used tariffs as a lever to put diplomatic and negotiating pressure, including imposing many new tariffs on most US trading partners.
These taxes include reciprocal taxes on trade activities that Washington considers unfair, along with separate taxes targeting key partners such as Mexico, Canada and China related to illegal drug flows and immigration.
President Donald Trump's latest tax ruling on February 20th does not affect the specific tariffs by sector that Mr. Trump has specifically imposed on steel, aluminum and many other goods imported into the US. Some government investigations, which could lead to tariffs by sector, are still ongoing.