On February 20, in a landmark decision on the separation of powers with significant implications for international trade, the U.S. Supreme Court ruled that the International Emergency Economic Powers Act (IEEPA) does not authorize the President to impose tariffs unilaterally, as Congress has not clearly delegated its fundamental tax and tariff powers to the Executive Branch through that law.

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This decision significantly reduces the President's ability to use IEEPA as a general economic tool in national emergencies, which has the following implications:
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• Limit on IEEPA: Tariffs cannot be imposed or adjusted under IEEPA; the Executive must rely on specific trade statutes that mention equivalent rights or terms and comply with their procedural and substantive limits.
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• Broader trend: The ruling reinforces a trend of limiting implicit delegations of fundamental Article I powers—particularly taxation and spending—under the “major questions” doctrine.
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• No emergency exception: The Court's rejection of an “emergency” or “foreign affairs” exception may restrict future uses of broad emergency statutes for large-scale economic policy.
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• Remaining tariff authority: Presidential tariff authority remains robust under other statutes—Section 232, Sections 122, 201, and 301 of the Trade Act of 1974, and Section 338 of the Tariff Act of 1930—which continue to authorize broad tariff measures.
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• Refund claims: For importers and other market participants, the decision creates potential avenues for refund claims on tariffs based on IEEPA.

On the same date, President Trump announced the imposition of new tariffs of 10%, to be increased to 15% now, based on the provisions of Section 122 of the Trade Act of 1974, a tool designed to correct imbalances in the balance of payments.

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This new measure will take effect at 12:01 a.m. on Tuesday, February 24, 2026, and will initially last for 150 days, applying to all goods imported by the United States with some exceptions, including goods covered by the United States-Mexico-Canada Agreement (USMCA).

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In this regard, goods imported into the United States from Mexico are currently subject to the following tariffs:
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• The new 15 percent tariff will apply to goods that do not comply with USMCA rules.
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• Tariffs imposed under Section 232 in various sectors of the country, notably the automotive sector, as well as on goods related to steel, aluminum, and copper (ranging from 25% to 50%).
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At Mijares, Angoitia, Cortés y Fuentes, we support our clients in identifying the impacts these changes may have on their operations and in implementing strategies in line with the new global tariff environment. If you have any questions or comments, please contact our expert team.