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The Supreme Court struck down some of Trump's most sweeping tariffs. Which levies are impacted?

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The Supreme Court struck down some of Trump's most sweeping tariffs. Which levies are impacted?
News

News

The Supreme Court struck down some of Trump's most sweeping tariffs. Which levies are impacted?

2026-02-21 00:04 Last Updated At:00:10

NEW YORK (AP) — The nation's highest court struck down some of U.S. President Donald Trump's most sweeping tariffs on Friday, in a 6-3 decision ruling that he overstepped his authority when using an emergency powers law to justify new taxes on goods from nearly every country in the world.

Trump has launched a barrage of new tariffs over the last year. Despite Friday's ruling, many sectoral levies remain in place — and the president still has plenty of other options to keep taxing imports aggressively. But the Supreme Court decision upends a core set of tariffs that Trump imposed using the 1977 International Emergency Economic Powers Act, or IEEPA.

IEEPA authorizes the president to broadly regulate commerce after declaring a national emergency. Over the years, presidents have turned to this law dozens of times, often to impose sanctions on other countries. But Trump was the first to use it to implement tariffs.

Here's a look at what tariffs Trump imposed using IEEPA — and other that levies still stand today.

Trump used IEEPA to slap import taxes on nearly every country in the world last spring. On April 2, which Trump called Liberation Day, he imposed “reciprocal” tariffs of up to 50% on goods from dozens of countries — and a baseline 10% tariff on just about everyone else.

The 10% tax kicked in early April. But the bulk of Liberation Day's higher levies got delayed by several months, and many rates were revised over time (in some cases after new “framework” agreements). Most went into effect on Aug. 7.

The national emergency underlying these tariffs, Trump argued at the time, was the long-running gap between what the U.S. sells and what it buys from the rest of the world. Still, goods from countries with which the U.S. runs a trade surplus also faced taxes.

Major trading partners impacted by Liberation Day tariffs include South Korea, Japan and the European Union — which combined export a range of products to the U.S., like electronics, cars and car parts and pharmaceuticals. Following trade talks, Trump's rates on most goods stood at 15% for the EU, Japan and South Korea ahead of Friday. But just last month, Trump threatened to hike levies on certain South Korean products to 25% — and countries worldwide still face sector-specific, non-IEEPA tariffs.

At the start of his second term, Trump used IEEPA to impose new tariffs on America's three biggest trading partners: Mexico, Canada and China.

To justify these tariffs, Trump declared a national emergency ostensibly over undocumented immigration and the trafficking of drugs like fentanyl and the chemicals made to use it. The levies were first announced at the start of February 2025, but went into effect over time — and were at times delayed, reduced or heightened through further retaliation.

Ahead of Friday's decision, “trafficking tariffs” on Canadian and Mexican imports were 35% and 25%, respectively, for goods that don't comply with the 2020 United States-Mexico-Canada Agreement. China, meanwhile, faced a 10% fentanyl-related tariff. That's down from 20% imposed by Trump earlier last year. Chinese goods also once saw sky-high levies after Liberation Day, but rates have since come down during trade talks.

Top U.S. imports from China include mobile phones and other electronics, as well as clothing, toys and household appliances. Meanwhile, Canada and Mexico are both major sources of cars and auto parts. Canada is also the U.S.’s largest supplier of crude oil. And Mexico is a key exporter of fresh produce, beverages and more.

Trump also used IEEPA to slap steep import taxes on Brazilian imports over the summer, citing the country's policies and criminal prosecution of former President Jair Bolsonaro.

Brazil already faced Trump's 10% baseline Liberation Day rate. The Bolsonaro-related duties added another 40%, bringing total levies to 50% on many products ahead of Friday.

The U.S. has actually run a consistent trade surplus with Brazil over the years. But top exports from the country include manufactured products, crude oil and agricultural products like soybeans and sugar.

India has faced additional IEEPA tariffs, too. After Liberation Day, Trump slapped a 25% levy on Indian imports — and later added another 25% for the country's purchases of Russian oil, while also citing the emergency powers law, bringing the total to 50%.

But earlier this month, the U.S. and India reached a trade framework deal. Trump said Prime Minister Narendra Modi agreed to stop buying Russian oil, and that he planned to lower U.S. tariffs on its ally to 18%. Meanwhile, India said it would “eliminate or reduce tariffs” on all U.S. industrial goods and a range of agricultural products.

Indian's top exports to the U.S. include pharmaceuticals, precious stones, clothing and textiles.

Despite the Supreme Court knocking down the sweeping import taxes Trump imposed with IEEPA, most of America's trading partners still face steep tariffs on specific sectors.

Citing national security threats, Trump has used another law — Section 232 of the 1962 Trade Expansion Act — to slap new levies on steel, aluminum, cars, copper and lumber worldwide. He began to roll out even more Section 232 tariffs in September, on kitchen cabinets, bathroom vanities and upholstered furniture.

Amid pressure to lower rising prices, Trump has rolled back some of his tariffs recently. Beyond trade frameworks, that's included adding exemptions to specific levies and scrapping import taxes for goods like coffee, tropical fruit and beef.

Still, Trump has continued to threaten that more sectoral levies are on the way.

AP Writers Paul Wiseman and Lindsay Whitehurst contributed to this report.

FILE - President Donald Trump speaks before he signs a presidential memorandum imposing tariffs and investment restrictions on China in the Diplomatic Reception Room of the White House, March 22, 2018, in Washington. (AP Photo/Evan Vucci, File)

FILE - President Donald Trump speaks before he signs a presidential memorandum imposing tariffs and investment restrictions on China in the Diplomatic Reception Room of the White House, March 22, 2018, in Washington. (AP Photo/Evan Vucci, File)

WASHINGTON (AP) — The Supreme Court struck down President Donald Trump's far-reaching global tariffs on Friday, handing him a significant loss on an issue crucial to his economic agenda.

The 6-3 decision centers on tariffs imposed under an emergency powers law, including the sweeping “reciprocal” tariffs he levied on nearly every other country.

It's the first major piece of Trump's broad agenda to come squarely before the nation's highest court, which he helped shape with the appointments of three conservative jurists in his first term.

The majority found that the Constitution “very clearly” gives Congress the power to impose taxes, which include tariffs. “The Framers did not vest any part of the taxing power in the Executive Branch,” Chief Justice John Roberts wrote.

Justices Samuel Alito, Clarence Thomas and Brett Kavanaugh dissented.

“The tariffs at issue here may or may not be wise policy. But as a matter of text, history, and precedent, they are clearly lawful,” Kavanaugh wrote.

Trump called the majority decision “a disgrace” when he was notified during his morning meeting with several governors, according to someone with direct knowledge of the president’s reaction, who spoke on the condition of anonymity to discuss the private conversation.

Trump was meeting privately with nearly two dozen governors from both parties when the decision was released. The White House did not immediately respond to a request for comment.

The majority did not address whether companies could get refunded for the billions they have collectively paid in tariffs. Many companies, including the big-box warehouse chain Costco, have already lined up to demand refunds in lower courts. Kavanaugh noted the process could be complicated.

“The Court says nothing today about whether, and if so how, the Government should go about returning the billions of dollars that it has collected from importers. But that process is likely to be a ‘mess,’ as was acknowledged at oral argument,” he wrote.

The Treasury had collected more than $133 billion from the import taxes the president has imposed under the emergency powers law as of December, federal data shows. The impact over the next decade was estimated at some $3 trillion.

The tariffs decision doesn’t stop Trump from imposing duties under other laws. While those have more limitations on the speed and severity of Trump’s actions, top administration officials have said they expect to keep the tariff framework in place under other authorities.

The Supreme Court ruling comes despite a series of short-term wins on the court’s emergency docket that have allowed Trump to push ahead with extraordinary flexes of executive power on issues ranging from high-profile firings to major federal funding cuts.

The Republican president has been vocal about the case, calling it one of the most important in U.S. history and saying a ruling against him would be an economic body blow to the country. But legal opposition crossed the political spectrum, including libertarian and pro-business groups that are typically aligned with the GOP. Polling has found tariffs aren't broadly popular with the public, amid wider voter concern about affordability.

The Constitution gives Congress the power to levy tariffs. But the Trump administration argued that a 1977 law allowing the president to regulate importation during emergencies also allows him to set tariffs. Other presidents have used the law dozens of times, often to impose sanctions, but Trump was the first president to invoke it for import taxes.

“And the fact that no President has ever found such power in IEEPA is strong evidence that it does not exist,” Roberts wrote, using an acronym for the law called the International Emergency Economic Powers Act.

Trump set what he called "reciprocal" tariffs on most countries in April 2025 to address trade deficits that he declared a national emergency. Those came after he imposed duties on Canada, China and Mexico, ostensibly to address a drug trafficking emergency.

A series of lawsuits followed, including a case from a dozen largely Democratic-leaning states and others from small businesses selling everything from plumbing supplies to educational toys to women’s cycling apparel.

The challengers argued the emergency powers law doesn’t even mention tariffs and Trump's use of it fails several legal tests, including one called the major questions doctrine that doomed then-President Joe Biden's $500 billion student loan forgiveness program.

The conservative justices in the majority pointed to that principle in their ruling. “There is no exception to the major questions doctrine for emergency statutes,” Roberts wrote.

The Trump administration had argued that tariffs are different because they’re a major part of Trump’s approach to foreign affairs, an area where the courts should not be second-guessing the president.

But Roberts, joined by Justices Neil Gorsuch and Amy Coney Barrett, brushed that aside, writing that the foreign affairs implications don't change the legal principle.

Associated Press writers Mark Sherman in Washington and Steve Peoples in New York contributed to this report.

Follow the AP's coverage of the U.S. Supreme Court at https://apnews.com/hub/us-supreme-court.

FILE - The Supreme Court is seen, Jan. 13, 2026, in Washington. (AP Photo/Julia Demaree Nikhinson, File)

FILE - The Supreme Court is seen, Jan. 13, 2026, in Washington. (AP Photo/Julia Demaree Nikhinson, File)

FILE - The Supreme Court is photographed, Feb. 6, 2026, in Washington. (AP Photo/Rahmat Gul, File)

FILE - The Supreme Court is photographed, Feb. 6, 2026, in Washington. (AP Photo/Rahmat Gul, File)

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