In the wake of the U.S. Supreme Court’s Feb. 20 decision to reject the use of the International Emergency Economic Powers Act (IEEPA) to impose global tariffs, the Hardwood Federation (Washington, D.C.) has issued an overview of White House actions, likely next steps and reactions from trading partners. The following information was provided by the public policy and public affairs consultancy Monument Advocacy
• The White House issued a new Executive Order on Feb. 20, imposing a 10% “Worldwide Tariff” on most goods entering the United States. The tariff will remain in effect for up to 150 days unless Congress votes to extend it. The next morning, however, President Trump stated on Truth Social that he intends to raise the rate to 15%, though that increase has not yet been formalized by executive order.
• While a detailed tariff schedule has not yet been released, a White House fact sheet outlines broad exemptions, including certain critical minerals, bullion and currency metals, energy and energy products, fertilizers and natural resources not produced domestically, select agricultural products, pharmaceuticals and pharmaceutical inputs, certain electronics, vehicles, aerospace products, imports already subject to Section 232 tariffs and goods entering duty-free under USMCA or CAFTA-DR.
• All existing Section 232 and Section 301 tariffs remain in place. The suspension of duty-free de minimis treatment for shipments under $800 also continues to apply to all countries.
Next Steps
• The White House plans to direct the Office of the U.S. Trade Representative (USTR) to initiate a series of accelerated Section 301 investigations targeting “most major trading partners.” USTR may investigate and respond to unfair foreign trade practices and, if warranted, impose tariffs, suspend trade agreement concessions or negotiate binding trade commitments. Section 301 does not impose a statutory cap on tariff rates or a fixed duration.
• The Administration is widely expected to phase in new Section 301 tariffs before the Section 122 Worldwide Tariff expires in September, thereby maintaining continuity in its broader trade strategy.
• The White House maintains that existing trade agreements remain in force despite the Supreme Court’s decision. However, President Trump has warned that “any Country that wants to ‘play games’” with the Supreme Court’s recent decision, “will be met with a much higher tariff.”
Reaction from U.S. Trade Partners
According to the federation and Monument Advocacy, here is how some U.S. trade partners have reacted to Trump’s moves:
• The European Commission formally requested “full clarity” from Washington, warning that the current uncertainty is not conducive to advancing the “fair, balanced, and mutually beneficial” trade framework outlined in the August 2025 EU-U.S. Joint Statement.
• China urged the United States to cancel unilateral tariffs, reiterating that “there are no winners in a trade war.”
• South Korea indicated that the existing tariff agreement framework would remain intact.
• A senior official in Japan said the ruling would not alter Japan’s U.S. investment commitments
• Canada’s Trade Minister Dominic LeBlanc stated that the Supreme Court’s decision reinforces Canada’s longstanding position that the levies were “unjustified."
• Mexico’s President Claudia Sheinbaum said Mexico is reviewing the ruling before issuing further comment.
• India officials said they are assessing the implications of the decision and postponed a delegation that had been scheduled to travel to Washington to finalize trade negotiations.
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