Tariffs SCOTUS Trial: News and Final Ruling

On February 20th, the Supreme Court of the United States ruled that President Trump's global reciprocal tariffs and fentanyl tariffs were unlawful. They stated that the IEEPA (International Emergency Economic Power Act) does not authorize Trump to impose those tariffs, as it "exceeded" his presidential authority. It is important to note that this ruling DOES NOT AFFECT Section 232 tariffs on Steel. 

On February 20th, Trump announced he would impose a temporary 10% global tariff under Section 122 of the Trade Act of 1974. This took effect on February 24th, where it allows for a temporary 10% tariff on most imports for up to 150 days. A few days later, the Trump administration increased the rate to 15% on some items. Section 122 Tariff expires on 07/24/2026. 

Last month, the U.S. Trade Court, in a 2-1 decision, ruled in favor of Twenty-four (24) states who successfully challenged President Trump's Section 122 Tariffs. The judicial panel found the tariffs unlawful on the basis that the Government did not prove there was a "deficit in he U.S.'s balance of payments." 

When asked about the decision, President Trump said "We always do it a different way;" "We get one ruling, and we do it a different way." Recently, the administration announced plans to implement "Forced Labor" tariffs as this "different way." 

U.S v Iran Conflict

Nationally, the ongoing U.S.–Iran conflict has become a major driver of volatility in global crude oil markets, with prices surging above $100/barrel as fears grew over disruptions to the Strait of Hormuz—a critical shipping route that carries roughly 20% of the world’s oil. 

The ongoing carrousel of ceasefire and Strait closure compounds the frustration of uncertainty. Recent reports of the war reigniting indicate the end may not be near. 

Why is this important? Commodity prices, specifically nickel, track oil prices. Additionally, the Middle East region accounts for ~25% of global sulfur production, which is a critical ingredient for nickel refining. As such, expect a future increase!

NEWEST DEVELOPMENT: As of 7/01/2026, the planned peace deal with Iran blew up when both sides claimed to have violated the ceasefire. Currently, U.S.-Iran diplomacy remains uncertain after Iran said it has no meetings scheduled with U.S. envoys in Doha, contradicting earlier suggestions that talks were imminent. At the same time, the fragile ceasefire is still holding, helping ease concerns about oil supplies and lowering global oil price forecasts as shipping through the Strait of Hormuz has stabilized. Positive news, several Japanese tankers recently successfully navigated the Straight. As always, this situation is extremely volatile and could change by the hour, so stay updated for the newest development!! 

Section 232: New Guidance 

On April 6th, the government published new Section 232 guidance, mostly concerning derivatives, metals classifications, changes in country of origin application, etc. 

Bad news, nothing changes regarding the Steel War Tariffs, which remain 50% on all Copper, Steel and Aluminum.