Trump turns to 1974 Trade Act to salvage tariff agenda after Supreme Court defeat

The Trump administration lost its preferred tariff weapon in February 2026 when the Supreme Court ruled 6-3 that the International Emergency Economic Powers Act doesn’t actually authorize import tariffs. Rather than accept the setback, the White House pivoted to a dusty provision from the 1974 Trade Act, slapping a global tariff on most imports and daring the courts to stop that one too. The legal play-by-play After the Supreme Court shut down the IEEPA route, the administration quickly turned to Section 122 of the Trade Act of 1974. That provision allows the president to impose temporary tariffs to address balance-of-payments deficits. The initial rate was set at 10%, then bumped to 15% on a global basis, with a 150-day clock that puts the expiration somewhere around late July 2026. On May 7, 2026, the US Court of International Trade ruled 2-1 that the Section 122 tariffs were unlawful. The court’s reasoning was straightforward: the tariffs exceeded the authority Congress granted for addressing balance-of-payments issues. Despite that ruling, the administration continues to litigate. The tariffs remain a live issue as the July deadline approaches. Why crypto cares about trade law ...