WASHINGTON — The Supreme Court struck down tariffs imposed by the Trump administration under the International Emergency Economic Powers Act in 2026. In response, the administration immediately enacted new blanket tariffs of 10 percent under Section 122 of the Trade Act of 1974.

The original tariffs had targeted a range of imports. Following the Court’s invalidation, the administration moved to maintain trade restrictions using alternative statutory authority. The administration is also exploring the possibility of imposing larger tariffs under Section 301 of the Trade Act, though no formal action has been taken under that provision.

Economic effects of the tariff policies appeared in consumer prices. According to the Consumer Price Index report for April 2026, overall prices rose 3.8 percent year over year. Energy prices accounted for more than 40 percent of that increase. Footwear prices rose 4.2 percent in the same month, marking the fastest increase in 43 months and driven by tariff-related costs.

Businesses reported financial pressure from the import measures. John Deere estimated a $1 billion tariff bill in 2026 to import goods and components needed for manufacturing U.S. farm equipment. A mid-2025 KPMG survey of 300 C-suite executives found that 43 percent of consumer goods executives reported a 1–5 percent decline in gross margins.

According to the National Association of Manufacturers, 56 percent of U.S. goods imports consist of inputs used in domestic manufacturing, highlighting the broad reach of tariff impacts across supply chains. Public opinion on tariffs varied by product type, as shown in a 2024 national survey by the Emerson College Polling Center. The survey found that 74 percent of Republicans and 53 percent of all Americans supported tariffs on computer chips or products deemed vital to national security. However, only 41 percent of Republicans supported raising tariffs on goods purchased at Walmart, Target, or Costco. The same survey indicated that 54 percent of Americans opposed tariffs on basic household items, compared to 27 percent who supported them.