Supreme Court Ruling on Trump Tariffs
On February 20, 2023, the Supreme Court ruled that President Trump’s use of the International Emergency Economic Powers Act (IEEPA) to impose the “Liberation Day” tariffs was illegal, nullifying tariffs on U.S. trading partners from April 2022. In response, Trump enacted a new 15% global tariff under Section 122 of the Trade Act of 1974, applicable to most imported goods.
These tariffs are temporary, lasting up to 150 days unless extended by Congress. While existing tariffs on steel, aluminum, and other materials, as well as Section 301 tariffs targeting China, remain unaffected, the ruling does not reinstate the previous “de minimis” rule exempting packages valued under $800 from tariffs, impacting cross-border retailers significantly.
