Crypto markets digest 10% tariff order after Supreme Court

President Donald Trump said he signed an executive order imposing a new 10% “global tariff” on imports from all countries, as reported by CNBC, just hours after the Supreme Court invalidated his prior tariff approach that relied on emergency powers, according to SCOTUSblog. The announcement shifts the legal basis for tariffs from the International Emergency Economic Powers Act to a trade statute with narrower, time-limited authority.

This report explains what the order does under Section 122 of the Trade Act of 1974, why it follows the Supreme Court ruling on IEEPA, and the immediate implications for prices, supply chains, and retaliation risks. It focuses on what is in effect now and the near-term outlook for businesses and consumers.

What the 10% global tariff under Section 122 does

The executive order institutes a uniform surcharge on covered imports, functioning as a 10% duty across all countries. The measure applies broadly at the border and is designed to be implemented quickly while agencies and importers adjust administrative procedures and compliance documentation.

Section 122 of the Trade Act of 1974 provides a temporary mechanism for an across-the-board import levy; the statute caps the duration at 150 days unless Congress authorizes a longer period, according to AP News. In practice, that time limit makes the policy a short-term instrument rather than a permanent shift in the U.S. tariff schedule.

Why this follows the Supreme Court ruling on IEEPA

The pivot comes after the Supreme Court rejected using IEEPA to impose sweeping tariffs, with legal coverage reporting that the emergency-powers law does not authorize economy-wide import duties absent clear congressional direction, as reported by The Guardian. Analysts emphasized the major questions doctrine, which requires explicit statutory grounding for policies of vast economic significance.

Because Section 122 expressly addresses temporary import surcharges, it offers a more targeted, though time-limited, legal pathway than IEEPA. Some experts note that while other trade statutes may support additional, narrower actions, none are as sweeping as the IEEPA approach the Court disallowed, according to Chatham House.

Immediate impacts on prices, supply chains, and retaliation risks

Near term, a uniform 10% global tariff would raise landed costs and could add mild upward pressure to consumer prices as supply chains reprice and reroute; uncertainty and volatility are likely for companies reviewing sourcing and contracts, according to the Atlantic Council. Exposure will vary by sector and import intensity, with manufacturers and import-reliant consumer goods most immediately affected.

Business groups are signaling concern about investment and competitiveness if broad surcharges persist beyond the statutory window. “Tariffs threaten investment, jobs, supply chains, and America’s competitiveness,” said Jay Timmons, CEO of the National Association of Manufacturers.

Industry-specific groups have warned about input costs flowing into final prices, from building materials to beverages, raising the prospect of higher home and consumer-goods prices and potential strain on exports if duties trigger tit-for-tat measures, as reported by Entrepreneur, while the European Union has warned of inflation risks and said it will ready countermeasures if talks fail, according to NPR. Retaliation could vary by sector and may target politically salient U.S. exports should negotiations stall.

Some governments are weighing litigation, including Brazil evaluating World Trade Organization avenues alongside diplomacy, as reported by Al Jazeera, and the overall footprint may hinge on whether and how additional country- or product-specific actions proceed under Sections 301 and 232, according to Business Insider. Businesses may face rolling adjustments to pricing, lead times, and inventory buffers as policies evolve.

Timeline: From Court decision to Section 122 executive order

On the day the Supreme Court struck down the earlier tariff strategy, the president announced he had signed the Section 122 executive order imposing a 10% tariff on imports from all countries, according to CBS News. The rapid sequence underscores a deliberate legal pivot from IEEPA to a trade-specific authority with defined temporal limits.