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Trump got blocked hard. The Supreme Court shut down his emergency tariff plan on February 20, 2026, but the president didn’t back down for even a second and immediately fired back with new trade weapons that caught everyone off guard.
“Effective immediately, all National Security TARIFFS, Section 232 and existing Section 301 TARIFFS, remain in place, and in full force and effect,” Trump said that same day. He signed a fresh order slapping a 10% global tariff using Section 122 of the Trade Act of 1974, which is totally separate from what the Supreme Court just killed. The justices only targeted the International Emergency Economic Powers Act, so Trump basically said fine, I’ll use different laws to get what I want. Markets didn’t see this coming at all.
The Court’s move was pretty clear. They said emergency powers can’t impose tariffs because tariffs are taxes, and only Congress gets to authorize taxes under the Constitution.
But Trump kept all his existing tariffs anyway. Section 232 tariffs on national security imports stay put. Section 301 tariffs targeting unfair trade practices from China and other countries aren’t going anywhere either. The Supreme Court didn’t even touch those, so they’re still hitting imports hard. And Trump’s new Section 122 tariff gives him fresh ammunition to fight trade imbalances without needing emergency declarations.
Markets went crazy at first. Stocks jumped when the Supreme Court news broke because investors thought the tariff threat was over. Bitcoin shot up too since traders figured global trade would calm down and money would flow easier. But then Trump’s counterpunch hit and everything got murky again.
The legal chess game here is wild. Trump’s team found Section 122, which lets presidents impose temporary tariffs to tackle trade imbalances using regular congressional authority, not emergency powers. So he doesn’t need to declare any crisis or emergency. He’s basically telling the Supreme Court that he’s got multiple ways to skin this cat, and they only blocked one path.
Wall Street’s pretty nervous now. The initial relief from the Supreme Court ruling evaporated fast when Trump’s new tariff order dropped. Currency traders are watching the dollar wobble against major currencies because nobody knows how trading partners will hit back. The S&P 500 can’t figure out which direction to go. More on this topic: Google Engineers Face Federal Charges Over.
Business groups are freaking out. The National Association of Manufacturers said on February 22 that companies need clarity on which imports get hit and for how long. “Supply chains are already stretched thin, and more uncertainty makes planning impossible,” one manufacturing executive said privately. Small businesses are probably going to get crushed the worst since they can’t absorb higher import costs like big corporations.
International retaliation seems inevitable. The European Commission basically threatened countermeasures on February 21 if Trump’s new tariffs hurt European exports. China hasn’t said much yet, but they’re probably cooking up their own response. Trade wars tend to escalate fast once they get rolling.
Katherine Tai, the U.S. Trade Representative, tried to calm things down at a February 23 press briefing. “We are actively engaging with our allies to ensure that these measures support fair trade practices,” Tai said. But diplomats from several countries privately said they’re preparing defensive measures just in case.
The Chamber of Commerce isn’t happy either. President Suzanne Clark warned on February 24 that small businesses will get hammered by higher import costs. “Our members are concerned about the ripple effects on supply chains and consumer prices,” Clark said. She’s pushing for exemptions on critical goods that small companies need.
Farmers are scared too. The American Farm Bureau Federation said on February 25 that retaliatory tariffs could devastate U.S. agricultural exports. “We are closely monitoring the situation and advocating for measures that safeguard our agricultural exports,” said Zippy Duvall, the federation’s president. American farmers sell tons of soybeans, corn, and wheat overseas, so they’re sitting ducks if trading partners decide to hit back. See also: Hyperliquid Launches Lobbying Division Ahead of.
The Fed hasn’t said anything yet about whether these tariffs might change their interest rate plans. But inflation concerns are already bubbling up since tariffs basically act like a tax on imports that gets passed to consumers. If prices start climbing again, the Fed might have to rethink their whole strategy.
Legal experts are scratching their heads about what happens next. Trump found a workaround that probably passes constitutional muster, but Congress could still step in if they want to limit presidential trade authority. The Supreme Court ruling was narrow enough that it didn’t shut down all presidential tariff powers, just the emergency ones.
And the timing couldn’t be worse for global trade. Supply chains are still recovering from previous disruptions, and now companies have to factor in new tariff costs and potential retaliation. Some economists think this could slow economic growth if businesses pull back on investment and hiring.
Trump’s move shows he’s not backing down on trade fights, even when the Supreme Court tries to box him in. He’s basically daring trading partners to escalate while betting that American businesses and consumers will tolerate higher costs. The next few weeks will probably determine whether this gamble pays off or blows up in everyone’s face.
Nobody knows how this ends. Trump’s got his tariffs, the Supreme Court drew some lines, and trading partners are getting ready to fight back.
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