The 2026 Supreme Court ruling just turned the e-commerce world upside down ... again.
The Court formally struck down President Trump’s authority to impose sweeping global tariffs under the International Emergency Economic Powers Act (IEEPA), ruling that such power rests solely with Congress. The decision directly affects roughly $133 billion in duties collected since 2025 and delivered a major constitutional check on presidential trade powers.
But just three days later, Trump announced he would invoke new 15% global tariffs under alternative authorities — specifically Section 122 of the Trade Act of 1974 and Section 301 provisions — escalating uncertainty worldwide. The White House confirmed implementation could begin as soon as April 2026.
So, while the Supreme Court curbed one legal route for broad tariffs, the administration is already pursuing another. Businesses shouldn’t expect relief anytime soon.
Supreme Court delivers rare constraint on presidential tariff authority
The 2026 SCOTUS ruling (Learning Resources v. Trump) represents the first major limitation on executive tariff power in decades.
The Court held 6 - 3 that the IEEPA statute doesn’t authorize presidents to impose tariffs, rejecting Trump’s reliance on emergency economic powers. Chief Justice John Roberts wrote the majority opinion, emphasizing Congress’s clear constitutional authority over taxation and trade measures.
“The Framers did not vest any part of the taxing power in the Executive Branch,” Roberts wrote, joined by Justices Gorsuch and Barrett in applying the major questions doctrine.
This decision ended nearly a year of legal uncertainty over Trump’s use of IEEPA to justify broad-based import duties.
Trump’s immediate response –
and the 15% global tariff move
Within hours of the decision, Trump called it "a disgrace" and pledged to "restore fair trade through other lawful means."
And on February 22, 2026, he announced a new 15% across-the-board tariff on nearly all imported goods, citing Section 122 authority — a Cold War–era statute that allows temporary tariffs up to 15% for up to 150 days during balance-of-payments crises.
Administration officials described the move as “temporary but renewable,” suggesting the tariffs could become effectively ongoing. Economists are already warning it could function as a de facto global tax on goods if extended through rolling authorizations.
The announcement rattled markets and stirred fresh debate in Congress, as several lawmakers indicated they may attempt to block or limit renewal authority.
E-commerce businesses face renewed chaos
Just as online retailers were preparing to recalibrate pricing models post–Supreme Court ruling, Trump’s 15% tariff announcement threw everything back into flux.
Key impacts already being reported:
- Cost pass-throughs remain significant. An estimated 88-90% of tariff costs still fall on U.S. firms and consumers.
- Freight and fulfillment contracts locked for Q2 will price in both legacy tariff uncertainty and expected new duties.
- Consumer demand is softening. Adobe’s Digital Price Index shows U.S. online prices rose about 2.9% year over year in January 2026, with a sharp 4.0% month‑over‑month increase, the largest monthly gain in the index’s 12‑year history.
In short: the hoped-for relief from tariff repeal never materialized. Businesses are now navigating a double whammy — a temporary legal victory offset by new, legally distinct tariff authority.
Remaining and new tariffs to watch
Even aside from the global 15% plan, several sector-specific tariffs remain unaffected:
- Section 232 tariffs on steel and aluminum (50%)
- Section 301 levies on Chinese imports (averaging 55%)
- New copper and EV component duties imposed in late 2025
- Continuing 120% “de minimis” duties on low-cost goods from China and Hong Kong
The Biden-era exemptions for certain industrial inputs remain revoked. In short, nearly all major categories of imports continue to face elevated duty levels.
What e-commerce leaders should do now
You can’t afford to stand still in this policy environment. The Supreme Court decision may signal limits to one tool, but the administration’s pivot shows tariffs aren’t going anywhere.
Here’s what to do next:
- Document every tariff-affected transaction from February 2026 onward. Accurate records remain essential for possible refunds once litigation concludes.
- Reassess pricing algorithms and dynamic repricing logic to handle sudden 15% import cost hikes.
- Update supplier contracts to clarify refund sharing and tariff pass-through responsibilities.
- Model “renewability scenarios” by assuming the new 15% tariffs persist beyond 150 days and plan accordingly.
Those who build pricing flexibility and strong trade documentation now will avoid being caught flat-footed if tariffs shift again midyear.
The bottom line
The Supreme Court’s February 2026 ruling constrained executive authority under one law, but not the practice of tariffs itself.
Three days later, Trump’s decision to impose 15% global tariffs under a different statute effectively reintroduced much of the pressure the market had just begun to unwind.
For online retailers and import-driven businesses, that means ongoing cost strain, delayed refunds, and complex compliance. Pricing adaptability and airtight records will define which e-commerce operations emerge stronger from this latest policy whiplash.
Preparation isn’t optional anymore ... it’s the new baseline for survival.
Key FAQ updates
Q1. Did the Supreme Court eliminate Trump’s tariffs?
Yes, it struck down his use of IEEPA for broad tariffs, but the administration immediately announced new 15% global tariffs under Section 122 authority.
Q2. Are prices expected to drop?
No. The 15% global tariffs set to begin April 2026 will likely offset any relief that might have come from the ruling.
Q3. What should businesses do now?
Document all prior tariff payments, renegotiate contracts to handle refund processes, and prepare pricing systems for the new global rate.
Q4. Are these new tariffs legal?
Yes ... for now. Section 122 allows 15% tariffs for up to 150 days, but Congress can move to limit extensions. Expect potential litigation or legislative pushback later in 2026.
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