$130 Billion Refund ORDERED—Trump’s Shocking Move

Hours after the Supreme Court struck down his emergency tariff powers, President Trump signed a new executive order imposing a 10% global tariff on all imports, demonstrating that judicial pushback will not halt his America First trade agenda.

Story Snapshot

  • Supreme Court ruled 6-3 that Trump exceeded authority using emergency powers for sweeping tariffs, requiring approximately $130 billion in refunds
  • Trump immediately pivoted, signing a 10% global tariff under different legal authority effective within days
  • Treasury Secretary confirms tariff revenue will remain unchanged in 2026 despite the Supreme Court setback
  • Existing tariffs on steel, aluminum, autos, and other sectors remain fully intact under separate legal frameworks

Trump’s Swift Response to Judicial Setback

President Trump signed an executive order on February 20, 2026, establishing a 10% tariff on all imports under Section 122 of the Trade Act, mere hours after the Supreme Court invalidated his previous tariff structure. The new tariff takes effect within three days and can last up to 150 days without congressional approval. Treasury Secretary Scott Bessent confirmed that 2026 tariff revenue projections remain virtually unchanged despite the Court’s intervention. This rapid pivot demonstrates Trump’s determination to maintain pressure on trading partners who have exploited America’s generosity for decades.

Supreme Court Ruling Creates Temporary Opening for China

The Supreme Court’s 6-3 decision in Learning Resources, Inc. v. Trump determined that the International Emergency Economic Powers Act does not authorize the president to impose broad tariffs based on trade deficits. The ruling requires refunds totaling approximately $130 billion to importers, creating a windfall for Chinese exporters and other foreign competitors. Legal expert Jonathan Turley warned that this decision undermines efforts to counter China’s unfair trade practices and intellectual property theft. The three dissenting justices, including Justice Kavanaugh, expressed concern about the Treasury impact and potential harm to America’s economic progress under Trump’s policies.

Legal Authority Remains Strong Despite Court Action

Trump’s existing tariffs under Section 232 national security provisions and Section 301 unfair trade practice authority remain completely unaffected by the Supreme Court ruling. These include substantial tariffs on steel, aluminum, automobiles, copper, and lumber that form the backbone of America’s manufacturing revival. U.S. Trade Representative Jamieson Greer emphasized that the administration has numerous legal tools available to protect American workers and industries. The new Section 122 tariffs provide temporary coverage while Trump launches Section 301 investigations into additional countries including Japan, Canada, and European Union members for potential targeted tariff increases.

Constitutional Concerns Over Judicial Overreach

Trump sharply criticized the Supreme Court majority, calling the decision a “disgrace” and questioning whether foreign influences affected the justices’ reasoning. The ruling represents another instance of judicial activism constraining executive authority on matters of national economic security and trade policy. For conservatives who value strong presidential leadership in protecting American interests, this decision raises concerns about unelected judges undermining the will of voters who elected Trump specifically to renegotiate unfair trade deals. The America First Policy Institute supported Trump’s position, arguing that decades of globalist policies have devastated manufacturing communities across the heartland while enriching foreign competitors.

Trump’s defiant response sends a clear message that defending American workers and industries remains his top priority regardless of judicial interference. The 150-day temporary nature of Section 122 tariffs creates pressure on Congress to support permanent solutions, while ongoing investigations lay groundwork for targeted actions against the worst trade offenders. This episode demonstrates why voters gave Trump a mandate to fight for fair trade, and why the administrative state and judicial activists continue resisting common-sense policies that put America first after years of politicians allowing foreign nations to exploit our economy.

Sources:

Trump signs order imposing 10% global tariff in wake of Supreme Court ruling – Politico

Supreme Court strikes down tariffs – SCOTUSblog

Learning Resources, Inc. v. Trump, No. 24-1287 – Justia