Trump races to replace struck-down tariffs

The U.S. Supreme Court in February 2026 struck down President Donald Trump's use of the International Emergency Economic Powers Act (IEEPA) to impose broad tariffs, ruling the president lacked authority under that law. The ruling forced the Treasury to refund $81 billion in tariffs collected, turning tariff revenue from a windfall into a drain, with a $25.6 billion loss in June 2026. Trump then invoked Section 122 of the Trade Act of 1974 to impose 10% global tariffs, but those expire on July 24, 2026, and Congress is unlikely to extend them. The administration is racing to replace them with Section 301 tariffs, which require procedural steps. U.S. Trade Representative Jamieson Greer has proposed tariffs on 60 countries over forced labor, and another investigation targets 16 countries for alleged overproduction. Analysts expect the administration to meet the deadline, but legal challenges are possible.