Supreme Court Strikes Down Trump’s Tariffs – But Uncertainty Persists

This post has been updated.

The Supreme Court on Feb. 20 ruled that President Trump’s attempts to use emergency powers under the International Emergency Economic Powers Act (IEEPA) was not valid.

While the Supreme Court’s ruling reins in presidential authority to impose tariffs under IEEPA, Trump still has wide latitude in setting tariff policy. Indeed, shortly after the Supreme Court verdict, the president announced he would impose a new, global tariff of 10%. The next day, he raised the figure to 15%.

Under the law he has now invoked, Section 122 of the Trade Act of 1974, tariffs may last only 150 days unless Congress extends them. And they’re capped at 15%, so the president can’t raise them again.

Moreover, the Supreme Court’s ruling does not reverse duties imposed under other statutory authorities available to the president. This includes the approximately 35% combined antidumping and countervailing duties on Canadian softwood lumber, the 10% global Section 232 tariff on softwood lumber, and the 50% global Section 232 tariff on steel and aluminum imports.

This tariff uncertainty — along with whether importers and businesses that paid tariffs under IEEPA can receive up to $175 billion in refunds — leaves tariff policy in a state of chaos, which will likely result in additional, complex litigation.

American consumers and businesses are unsure how any new tariffs will affect them. In the meantime, more than 60% of builders surveyed by NAHB have reported seeing higher costs because of tariffs.

With the nation facing a housing affordability crisis, NAHB continues to urge the president to exempt building materials as part of his tariff strategy because they raise construction costs, impede supply chains, and result in market and business uncertainty that make it difficult for builders to price their homes.