# How does the US Supreme Court ruling impact Thai exporters?

- Link: https://www.thailand-business-news.com/trade/288597-how-does-the-us-supreme-court-ruling-impact-thai-exporters
- Published: 2026-02-22T11:05:41+07:00
- Author: Boris Sullivan

Although a recent US Supreme Court ruling declared President Donald Trump’s use 
of emergency powers to impose certain tariffs unconstitutional, Thai exporters are
expected to see only a temporary reprieve from trade pressures.

In a landmark ruling on **February 20, 2026**, the U.S. Supreme Court struck a major
blow to the executive branch’s trade powers, a decision with immediate and significant
consequences for Thai exporters.  

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The court’s decision invalidated levies under the International Emergency Economic
Powers Act (IEEPA), yet the US administration has swiftly countered with a new 10%
global tariff under the Trade Act of 1974. Consequently, Thai industry leaders and
government officials warn that trade policy remains highly volatile, urging businesses
to diversify their export markets to mitigate the impact of “tariff stacking” and
persistent American protectionism.

## Key Points

 * **Supreme Court Ruling** : In a 6–3 decision, the US Supreme Court ruled that
   the executive branch overstepped its authority by using the IEEPA to levy tariffs,
   a power constitutionally reserved for Congress.
 * **Limited Impact** : The ruling only applies to tariffs imposed under the IEEPA,
   which represent approximately half of the tariff revenue collected since last
   year; other duties under Sections 301 and 232 remain in place.
 * **Immediate Countermeasures** : Following the ruling, the White House announced
   a new 10% global tariff on all imported goods for a 150-day period, utilizing
   Section 122 of the Trade Act of 1974.

### The implications of the US Supreme Court ruling for Thai exporters are significant and multifaceted

| **Tariff Type** | **Legal Status** | **Impact on Thai Exporters** | 
| **Reciprocal (IEEPA)** | **Struck Down** | Immediate removal of the 19%–36% extra duties. | 
| **Section 122** | **New/Active** | New 10% baseline tariff likely to apply for 150 days. | 
| **Section 232** | **Remains** | Steel and aluminum exports remain subject to existing duties. | 
| **AD/CVD** | **Remains** | Anti-dumping and countervailing duties are unaffected. |

### 1. Short-term Relief from IEEPA Tariffs

 * The ruling declared that former President Trump’s use of the International Emergency
   Economic Powers Act (IEEPA) to impose tariffs was unconstitutional. This provides
   some immediate relief from tariffs that were imposed under this law, which accounted
   for a substantial portion of tariff revenue.

### 2. Legal Clarity and Reduced Uncertainty

 * The decision enhances legal clarity regarding the authority to impose tariffs,
   which may reduce uncertainty for Thai exporters. This could lead to a more stable
   trading environment in the short term, making it easier for businesses to plan
   and operate.

### 3. Continued Trade Barriers

 * Despite the ruling, the Trump administration has announced a new 10% global tariff
   on imports. This means that while some tariffs may be lifted, others could be
   introduced or maintained, continuing the pressure on Thai exporters.

### 4. Impact on Negotiations

 * The ruling may influence ongoing negotiations between Thailand and the US regarding
   tariff reductions. Thailand is actively seeking to negotiate lower tariffs in
   exchange for purchasing US goods, which could be more favorable in light of the
   legal ruling.

While the Supreme Court ruling offers some relief and clarity for Thai exporters,
the landscape remains complex and uncertain. Businesses must navigate ongoing trade
barriers and adapt their strategies to mitigate risks associated with fluctuating
US trade policies.

## Potential for Tariff Refunds

One of the most complex implications for Thai businesses and their U.S. partners
is the issue of **restitution**.^()  

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 * **Revenue at Stake:** The U.S. government collected an estimated **$264 billion**
   in total tariff revenue in 2025.  
 * **The Process:** Because the Court ruled these tariffs were illegal from the 
   start, Thai exporters (or the U.S. importers of record) may be entitled to refunds
   for duties already paid. However, the Court did not provide a specific mechanism
   for these payouts, and the U.S. administration has signaled that the refund process
   could take years.

## The Pivot to “Section 122” and New Risks

While the IEEPA-based tariffs were struck down, the trade war has not ended; it 
has simply shifted legal grounds.^()  

 * **New 10% Global Tariff:** In response to the ruling, the administration immediately
   invoked **Section 122 of the Trade Act of 1974**. This allows for a **10% global
   tariff** for a limited period (150 days) to address balance-of-payment deficits.
 * **National Security Tariffs:** The ruling **does not** affect tariffs imposed
   under **Section 232** (National Security), such as those on steel and aluminum.
   Thai exporters in these specific sectors will see no change in their current 
   tariff rates.  

The Supreme Court ruling provides some relief and clarity for Thai exporters, yet
the landscape remains intricate and uncertain. Businesses must still tackle persistent
trade barriers and adjust their strategies to manage risks tied to unpredictable
US trade policies.