• Last Friday, the US Supreme Courtdecidedthat the International Emergency Economic Powers Act does not allow a US president the authority to unilaterally impose tariffs. • Over the last year, the US government has been leveraging tariff policy to negotiate new trade agreements (for example, recently signing agreements withIndonesiaandIndia.) Despite the fact that the US president has now declared a temporary, 150-day import surcharge of10%, raised to 15% over the weekend, tariff policy as a lever for economic negotiations has been upended. • For example, European Union lawmakers have postponed avote to ratifythe recent trade deal, citing the need for “full clarity” on next steps before proceeding (and other governments are also publicly saying they will reassess trade assumptions). • Amid quickly changing policy, what should executive leaders take away from this news? • TL;DR: If you aren’t leveraging a robust scenario planning discipline, now is the time to get started in earnest. • Tariff Relief Won’t Be Immediate - And Isn’t Even Guaranteed US Customs and Border Protection has said that itwill stop collecting tariffsunder the previous policies as of midnight February 24, but little else is certain.

Article Summaries:

  • The U.S. Supreme Court ruled that the International Emergency Economic Powers Act does not grant a president the authority to impose tariffs unilaterally, overturning a recent 150‑day import surcharge that was raised to 15%. The decision disrupts the U.S. use of tariffs as a bargaining tool in trade negotiations, prompting the EU to delay ratification of a new trade deal and prompting other governments to reassess their positions. While the president can still invoke other trade statutes, the path to tariff refunds is unclear and likely costly, and many firms that re‑engineered supply chains under prior tariffs face high unwinding costs. Executives are urged to adopt robust scenario planning to navigate the ongoing uncertainty.
  • The U.S. Supreme Court ruled that the International Emergency Economic Powers Act does not grant a president the power to impose tariffs unilaterally, overturning a key legal basis for recent U.S. tariff moves. Despite this, the president has announced a temporary 150‑day surcharge, and other trade‑law provisions (Sections 122, 232, 301) may still be used to impose new duties, creating a patchwork of uncertainty. European Union lawmakers have postponed ratifying a trade deal pending clearer guidance, and companies face uncertain refund timelines and potential legal costs. Executives are urged to adopt robust, always‑on scenario planning to navigate the shifting tariff landscape.

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