Gold tracks tariff pivot after U.S. court limits IEEPA

Key Takeaways:

• Supreme Court restricts IEEPA use for broad, emergency-based tariff actions.
• Trump pivots, plans executive order imposing a 10% global import tariff.
• He denounces ruling, cites Trade Act Section 122 as alternative authority.

The U.S. Supreme Court limited the use of the International Emergency Economic Powers Act (IEEPA) for sweeping tariffs, curbing presidential authority to levy broad duties without Congress. According to Al Jazeera, the IEEPA Supreme Court ruling on February 20, 2026, found tariffs imposed under a national-emergency rationale exceeded the statute’s scope.

Hours later, policy plans shifted toward a uniform import duty. As reported by Axios, President Donald Trump said he would sign an executive order to impose a 10% global tariff on all nations, replacing portions of the tariffs the Court overturned.

Trump also attacked the decision and outlined a different legal basis for new duties. According to People.com, he called the Court “a disgrace to our nation” and said he would proceed under Section 122 of the Trade Act of 1974, a statute permitting temporary tariff measures.

It is a flat, across-the-board 10% duty proposal covering nearly all imported goods, with additional levies contemplated for some major trading partners. Based on reporting by The Washington Post, the International Monetary Fund warned such a 10% global tariff could weigh on growth via trade disruptions and inflationary pressures, projecting global growth at 2.8% in 2025 and U.S. growth at 1.8%.

The same report noted private-sector forecasters adjusted outlooks to reflect likely pass-through to prices and higher business uncertainty. The Washington Post also cited BMO Capital Markets as having downgraded U.S. growth expectations and raised inflation projections amid the tariff policy backdrop.

Exposure varies by region and supply-chain structure. As reported by The Guardian, Capital Economics estimated the EU could see roughly 0.25% slower growth and China about 0.75% under higher tariff settings.

Economists have warned that broad, uniform duties act like a self-imposed supply shock that raises costs across the economy. “The biggest U.S. economic policy mistake since the Second World War,” said Lawrence H. Summers, former U.S. Treasury Secretary, as reported by The Harvard Crimson.

Legally, the administration’s pivot points to Section 122 of the Trade Act of 1974, which authorizes temporary tariff increases. According to People.com, officials have framed this as an alternative path following the Court’s IEEPA ruling, with implementation details to be set by executive action.

At the time of this writing, Apple Inc. (AAPL) traded at 261.40, up 0.31% intraday, based on data from Nasdaq real-time prices. This market snapshot provides context as investors assess trade-policy headlines.

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