Trump orders temporary 10% global tariff to replace duties struck down by US Supreme Court

By Gram Slattery and Andrea Shalal

WASHINGTON, Feb 20 (Reuters) - U.S. President Donald Trump said on Friday that he would impose a 10% global tariff for 150 days to replace some of his emergency duties that were struck down by the U.S. Supreme Court.

Trump said that his order would be made under Section 122 of the Trade Act of 1974 and the duties would be over and above tariffs that are currently in place. The new 10% tariff would go into effect in about three days.

The statute allows the president to impose duties of up to 15% for up to 150 days on any and all countries related to "large and serious" balance of payments issues. It does not require investigations or impose other procedural limits.

The Supreme Court earlier declared illegal his broad global tariffs imposed under the International Emergency Economic Powers Act, ruling that he had overstepped his authority under that law.

"We have alternatives, great alternatives," Trump said. "Could be more money. We'll take in more money and we'll be a lot stronger for it," Trump said of the alternative tools.

Trump said his administration also was initiating several Section 301 unfair trade practices investigations "to protect our country from unfair trading practices of other countries and companies."

FASTER INVESTIGATIONS

Trump's decision to lean on other statutes, including Section 122, while initiating new investigations under Section 301 had been widely anticipated. But the 10% tariffs he announced Friday can only remain in effect for 150 days, and Section 301 investigations generally take months to complete.

But Trump said that the five-month window would allow his administration to complete investigations to enhance tariffs.

Asked if rates would ultimately end up being higher after more Section 232 national security probes and Section 301 probes, Trump said: "Potentially higher. It depends. Whatever we want them to be."

He said some countries "that have treated us really badly for years" could see higher tariffs, whereas for others, "it's going to be very reasonable for them."

U.S. Trade Representative Jamieson Greer said details on new Section 301 investigations would be revealed in coming days, adding that these are "incredibly legally durable." Trump used that unfair trade practices statute to impose broad tariffs on Chinese imports during his first term.

REFUNDS TO BE 'LITIGATED'

The Supreme Court's ruling puts about $175 billion in tariff revenue collected over the past year subject to potential refunds, according to estimates provided to Reuters by Penn-Wharton Budget Model economists.

Asked if he would refund the IEEPA duties, Trump said, "I guess it has to get litigated for the next two years," a response indicating that a quick, automatic refund process was unlikely.

Speaking in Dallas, U.S. Treasury Secretary Scott Bessent told business leaders that since the Supreme Court did not provide any instructions on refunds, those were "in dispute," adding: "My sense is that could be dragged out for weeks, months, years."

But he said that by using new Section 122 tariffs coupled with enhanced Section 232 and Section 301 tariffs, the Treasury estimates that this "will result in virtually unchanged tariff revenue in 2026" despite the loss of the IEEPA tariff receipts.