WASHINGTON — President Donald Trump did not wait.
Just hours after the U.S. Supreme Court struck down his previous tariffs, he moved swiftly — signing new executive orders late Friday night.
By Tuesday, a temporary 10% tariff on imports from around the world will take effect.
It will last 150 days.
And it may only be the beginning.
A Fast Pivot After a Legal Setback
The Supreme Court ruled that Trump’s earlier tariffs — imposed under a 1977 emergency powers law — were illegal.
That decision effectively ended the collection of duties ranging from 10% to 50%.
For many presidents, that would have meant retreat.
For Trump, it meant regrouping.
Instead of relying on the emergency powers law, he turned to a rarely used provision — Section 122 of the Trade Act of 1974 — which allows a president to impose tariffs of up to 15% for 150 days without lengthy investigations.
No drawn-out process.
No immediate congressional approval.
Just action.
The White House justified the move by citing what it called a “large and serious balance of payments deficit” that is worsening.
“We have alternatives, great alternatives,” Trump said.
“Could be more money. We’ll take in more money and we’ll be a lot stronger for it.”
Exemptions Remain — For Now
The new 10% tariff will not apply to certain goods.
Exemptions already in place will continue, including:
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Aerospace products
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Passenger cars and some light trucks
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USMCA-compliant goods from Mexico and Canada
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Pharmaceuticals
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Certain critical minerals and agricultural products
Treasury Secretary Scott Bessent insisted the revenue impact would remain virtually unchanged in 2026.
“We will get back to the same tariff level,” he said.
“It will just be in a less direct and slightly more convoluted manner.”
But behind those calm words is a bigger reality: the Supreme Court ruling weakened Trump’s negotiating leverage with trading partners.
And he knows it.
More Investigations. More Uncertainty.
The 10% tariff is temporary.
At the same time, Trump ordered new investigations under Section 301 and Section 232 — laws that allow tariffs tied to unfair trade practices or national security concerns.
These investigations could open the door to even higher tariffs.
Asked whether rates might rise after the probes are completed, Trump did not hesitate.
“Potentially higher. It depends. Whatever we want them to be.”
Some countries, he said, “that have treated us really badly for years” could face steeper penalties.
Others may see “very reasonable” treatment.
For businesses and global markets, that uncertainty hangs heavy.
The Refund Question
There is another storm brewing.
An estimated $175 billion in tariff revenue collected over the past year may now be subject to potential refunds following the Supreme Court ruling.
Will companies get their money back?
Trump suggested it won’t happen quickly — if at all.
“That will likely be litigated,” he said, hinting at a battle that could drag on for years.
Bessent echoed that view.
“My sense is that could be dragged out for weeks, months, years.”
In other words — don’t expect fast answers.
A Shift in Strategy
Trump previously favored emergency powers because they allowed fast, sweeping action.
Now, by pivoting to traditional trade laws, his administration may face longer investigations and stricter procedures — including research requirements and public comment periods.
That could slow things down.
But it could also bring more structure.
For businesses, that might mean clearer timelines — even if the outcome remains unpredictable.
What Happens Next?
The 10% tariff lasts five months.
After that, Congress would need to approve any extension.
Meanwhile, new investigations could take months — or up to a year — to complete.
Trade negotiations with major partners remain in limbo.
Deals that collapse, Trump warned, “will be replaced with the other tariffs.”
It’s a message that signals one thing clearly:
The tariff fight is far from over.
This is not a retreat.
It’s a reset.
And once again, global markets — and America’s trading partners — are bracing for what comes next.
