A landmark US court decision invalidating tariff authority under the International Emergency Economic Powers Act has reshaped the policy landscape significantly.

A landmark US court decision invalidating tariff authority under the International Emergency Economic Powers Act has reshaped the policy landscape significantly. The administration has pivoted to Section 122 of the 1974 Trade Act, imposing a temporary 10% global tariff on all imports for 150 days beginning February 24, 2026. This marks the first time this authority has been invoked. SBI Research indicates countries must adopt counter-intuitive negotiation strategies to position themselves strategically during this interim period, as ultimate power rests with a finely balanced US Congress. The decision creates complexity regarding existing trade agreements worth trillions of dollars with nations including China, the United Kingdom, and Japan.