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What the Supreme Court’s tariff ruling means for luxury imports

March 17, 2026

Rania V. Sedhom is managing partner at Sedhom Law Group Rania V. Sedhom is managing partner at Sedhom Law Group

 

By Rania V. Sedhom

The separation of powers in the U.S. government is a system that allows for checks and balances, such that no one branch would be able to control too much power.

President Trump used the power of his pen to impose tariffs on foreign goods imported to the U.S. using executive orders. The Supreme Court struck down the tariffs that were imposed through executive order because the power to regulate commerce is reserved for Congress.

The President may make commerce-regulating laws in cases of national emergency created by foreign threats.

Many are cheering the Supreme Court’s decision, applying for tariff refunds and forecasting based upon the pre-executive order tariffs. However, celebration is premature.

While President Trump overstepped his powers using executive orders to impose tariffs, he has other means of imposing tariffs at his disposal. Therefore, this story is not yet finished.

The Trade Act and Tariff Act allow the President latitude related to tariffs. For example, Section 301 of the Trade Act allows the imposition of tariffs to enforce U.S. rights under trade agreements and eliminate unfair foreign policies that burden U.S. commerce.

It would be of no surprise if this administration utilized this Section of the Act to impose tariffs on nations such as China.

Section 122 allows for the imposition of a tariff of up to 15 percent for 150 days to address a U.S. currency deficit. EU countries entered into trade agreements with the U.S. that resulted in lower tariffs — what will happen to these agreements if they were predicated on tariffs that were improperly imposed?

A pending law called the Sanctioning Russia Act gives the President authority to levy tariffs on trading partners that knowingly import, export and trade Russian-origin uranium and petroleum products. Countries include France, India and Turkey.

Many believe that we will continue to encounter a state of flux as it relates to tariffs, with no relief in immediate sight. Since companies will not automatically receive refunds and the world awaits the President’s next move, consumers will not see relief at the point of sale.