New tariffs take effect despite Supreme Court ruling

Despite a U.S. Supreme Court decision striking down broad Trump-era tariffs, a 10% global rate went into effect Feb. 24. Donald Trump implemented a 10% flat tariff for all trading partners after a Feb. 20 decision ruling that the president overstepped his authority under the International Emergency Economic Powers Act (IEEPA), and that Congress — not the White House alone — controls sweeping tariff measures. Agricultural groups expressed optimism that the court decision could relieve tariff turmoil, including rising costs for fertilizer, equipment and other critical inputs. But a day after the decision, Trump announced plans to implement a 15% tariff under a different trade law — Section 122 — that allows tariffs of up to 15% to be applied for up to 150 days. Hours before the new tariff took effect, U.S. Customs and Border Protection informed importers in a memo that the rate would initially be 10% and apply to every country, unless specifically exempt, for 150 days. A White House official told NBC News that the memo was correct. The renewed uncertainty led to the EU freezing implement of a trade deal reached with the U.S. last summer, while other trading partners, including India and China, mulled action. Most of the trade deals reached under the Trump administration have reached since last year have been under the IEEPA, the 1977 law the Supreme Court ruled Trump improperly used in imposing sweeping tariffs in 2025.

Grower reaction

After the court decision, the American Farm Bureau Federation (AFBF) praised the administration’s goal of supporting U.S. producers but highlighted the toll tariffs have taken on farmers. In a release, AFBF President Zippy Duvall said farmers understand the aim “to create a more level playing field for U.S. goods, U.S. workers and the U.S. economy,” but added that “trade disruptions and declining prices for agricultural goods created additional hardships for farmers who came into 2025 already dealing with crippling inflation and declining farm prices.” Duvall emphasized the need for policy stability going forward. “With supply costs already at or near record highs, we strongly encourage the president to avoid using any other available authorities to impose tariffs on agricultural inputs that would further increase costs,” he said. “America’s farmers and ranchers need stability to ensure families across America can put food on their tables.” The International Fresh Produce Association (IFPA) also welcomed the ruling, noting it “clarifies the limits of the International Emergency Economic Powers Act” and helps restore predictability to global produce markets. IFPA added, “Global trade of fresh produce is essential to the health and well-being of people in every nation, and today’s ruling helps restore predictability to a uniquely complex, seasonally driven marketplace.” Other farm organizations, including the National Farmers Union and Farmers for Free Trade, echoed AFBF’s call for stable trade policy, warning that tariffs on agricultural inputs disrupt markets and raise costs as planting season approaches.