Marketplace All-in-One Fallout from the Supreme Court's tariff decision
Feb 23, 2026
David Beer, director of Immigration Studies at the Cato Institute, explains how immigrants affect the federal budget. Felicity Hanna, BBC reporter, describes global trade reactions from India, the EU, China, and the UK. They discuss the Supreme Court ruling on tariffs, remaining legal authorities for import taxes, possible new global tariffs, and who might seek refunds.
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Court Ruling Removed Major Global Tariff Authority
- The Supreme Court struck down the administration's global tariffs under the International Emergency Economic Powers Act which cut the average effective tariff rate from ~16% to ~9%.
- Other authorities like Section 301 and Section 232 still permit many tariffs on items such as steel, aluminum, aircraft, medical equipment, and wind turbines, keeping trade disruption possible.
New Section 122 Tariffs Raise Average Tariff Rate
- Yale Budget Lab found the Supreme Court decision lowered average effective tariffs but the administration's new Section 122 tariffs raise the rate back to about 13.7% for 150 days.
- That temporary 15% global tariff announcement reverses much of the tariff-rate reduction from the court decision.
Global Trading Partners Are Recalculating Fast
- International partners are recalculating: India delayed a delegation, the EU considered freezing ratification, and China demanded cancellation of US tariffs.
- The UK may end up facing higher tariffs than before despite a prior 10% deal.