Supreme Court Strikes Down IEEPA Tariffs, Trump Immediately Imposes 10% Section 122 Tariffs | February 22, 2026

Investment Implications

U.S. Tariff Regime Shift: How Judicial Checks Created New Trade Uncertainty

The Supreme Court struck down IEEPA tariffs as unconstitutional, only for the Trump administration to immediately impose new tariffs under different legal authority. This legal whiplash deepens structural uncertainty in global trade. South Korea's tariff rate dropped from 15% to 10%, but the 150-day sunset clause and $175B refund uncertainty directly affect export strategies.

The Supreme Court's 6-3 ruling against IEEPA tariffs marks the judiciary's first serious check on presidential trade authority. But the Trump administration responded the same day by invoking Section 122 of the Trade Act of 1974—never used before—to impose a 10% global tariff. The tariff risk itself hasn't vanished, just changed costumes.

Set against the broader trend of deglobalization, this ruling feels less like the end of trade conflict and more like a change of legal wardrobe. Section 122 expires in 150 days and requires congressional extension. Meanwhile, USTR launched Section 301 investigations into most major trading partners, telegraphing the search for new tariff ammunition.

Three variables matter for South Korean investors. First, the tariff rate dropping from the prior 15% bilateral deal to 10% is a short-term tailwind for exporters, but post-150-day uncertainty remains. Second, the National Assembly plans to pass the $350B U.S. investment bill on March 5, keeping the economic cooperation framework intact. Third, if the $175B in tariff refund lawsuits succeed on a large scale, U.S. importers' improved cash flow could feed through to consumer recovery.

Key Developments

Technology

Alphabet Guides 2026 AI Infrastructure CapEx at $175-185B

Google Cloud revenue grew 48% year-over-year with 30.1% operating margin, while Alphabet guided 2026 capital expenditures at $175-185B. This represents a 91-102% increase from 2025's $91.4B and far exceeds the market consensus of $115B. (Source: Seeking Alpha)

India AI Summit Secures Joint Declaration from 88 Countries Including U.S. and China

The AI Impact Summit in New Delhi secured a joint declaration signed by 88 countries and international organizations, including the United States and China. It's the first AI summit hosted by a developing country, and the UN General Assembly confirmed the formation of a 40-member AI Science Panel modeled after the IPCC. (Source: LiveMint, The Hindu)

U.S. DOE Projects Enhanced Geothermal Could Deliver 90GW Carbon-Free Energy by 2050

The U.S. Department of Energy projects that enhanced geothermal projects could supply approximately 90GW of carbon-free energy by 2050, enough to power about 65 million households. Companies like Fervo Energy, backed by Bill Gates and Google, are leading the charge, and the technology enjoys rare bipartisan support as a clean energy solution. (Source: OilPrice)

EU Bans Chinese Institutions from Horizon Europe Critical Tech Programs

The EU banned Chinese institutions from participating in critical technology areas—AI, quantum computing, semiconductors, and biotechnology—of its €93B Horizon Europe grants program. Research security and military dual-use concerns drove the decision. (Source: South China Morning Post)

Major Password Managers Found with Encryption Flaws, "Zero Knowledge" Claims Questioned

Researchers from ETH Zurich and USI Lugano discovered encryption vulnerabilities in major cloud-based password managers—Bitwarden, Dashlane, LastPass—that allow access to or arbitrary modification of users' entire password vaults. (Source: Wired)

Economy

Supreme Court Strikes Down IEEPA Tariffs, Trump Immediately Invokes Section 122 for 10% Tariffs

The U.S. Supreme Court ruled 6-3 that global tariffs based on IEEPA were unconstitutional. On the same day, President Trump invoked Section 122 of the Trade Act of 1974—never used before—to impose a temporary 10% tariff. The measure is limited to 150 days and exempts critical minerals, energy, passenger vehicles, and pharmaceuticals. Treasury Secretary Bessent stated that replacing the old tariff law would result in no material change to 2026 tariff revenue. (Source: The Hindu, BBC, Wired)

$175B IEEPA Tariff Refunds Uncertain, Companies and States Flood Courts with Claims

The Supreme Court did not specify a refund mechanism, leaving approximately $175B in collected tariffs in limbo. More than 1,000 refund lawsuits have already been filed, including from Costco and Revlon. Illinois Governor claimed $8.7B in damages ($1,700 per household), and Nevada submitted a $2.1B refund claim. (Source: Economic Times India, NPR)

All Trade Agreement Countries Cut to Flat 10% Rate, South Korea Drops from 15%

All countries with existing trade agreements saw their tariff rates reduced to a flat 10%. This includes South Korea (from 15% to 10%), India (from 18% to 10%), Vietnam (from 20% to 10%), and the EU, Japan, and Switzerland (each from 15% to 10%). The White House stated it expects countries to continue delivering on previously agreed concessions. (Source: LiveMint)

South Korean Parliament Confirms $350B U.S. Investment Bill for March 5 Plenary

The South Korean National Assembly special committee confirmed a public hearing on February 25 and plenary processing on March 5 for legislation related to the $350B U.S. investment pledge ($200B cash plus $150B shipbuilding cooperation). Both parties agreed to proceed on schedule despite the Supreme Court ruling. (Source: Yonhap News)

U.S. December New Home Sales Down 1.7% MoM, 30-Year Mortgage Drops to 6.01%

U.S. December new single-family home sales declined 1.7% month-over-month to an annualized 745,000 units but rose 3.8% year-over-year. The 30-year fixed mortgage rate fell to 6.01%, the lowest since September 2022. Inventory of homes under construction hit the lowest in approximately 4.5 years. (Source: Economic Times India)

Vietnam Airlines Sign $37B Purchase Contracts with U.S. Aerospace Firms

Three Vietnamese airlines signed approximately $37B in purchase contracts with U.S. aerospace companies. The Trump-Trong summit also announced Vietnam's removal from the strategic export control list. (Source: South China Morning Post)

Politics

Trump Publicly Considers Limited Military Strike on Iran Nuclear Facilities

President Trump stated he is considering a limited military strike against Iran's nuclear program. Reuters reports that military planning has advanced to include options for targeted strikes on individuals and regime change. Aircraft carrier USS Abraham Lincoln is currently deployed in the Middle East, with USS Gerald Ford en route. (Source: CNBC, LiveMint)

South Korean Defense Minister Protests to USFK Commander Over U.S.-China Yellow Sea Incident

South Korean Defense Minister Ahn Kyu-baek protested to USFK Commander General Brunson over the U.S.-China fighter jet standoff in the Yellow Sea. USFK confirmed it had notified the training plan in advance but did not communicate specific objectives. (Source: Yonhap News)

Over 80 Countries Condemn Israel's Unilateral West Bank Measures, Demand Reversal

Over 80 UN member states, the EU, and the Arab League condemned Israel's unilateral measures in the West Bank, including land registration and expanded environmental/archaeological controls. The Palestinian Authority is paying civil servants only 60% of salaries due to over $4B in withheld Israeli tax transfers, and schools are operating only three days per week. (Source: BBC)

Trump Announces Directive to Remove Vietnam from Strategic Export Control List

President Trump told General Secretary Trong he would direct agencies to remove Vietnam from the strategic export control list. Vietnam had already secured a tariff reduction from 40% to 20% in July 2025 and now gains relief from technology access restrictions. (Source: Economic Times India, South China Morning Post)

North Korea's 9th Party Congress Formalizes Dual Nuclear-Conventional Military Strategy

The Workers' Party of Korea's 9th Congress convened in Pyongyang with 5,000 delegates and 2,000 observers. Kim Jong-un formalized a dual military strategy that simultaneously advances nuclear forces and conventional military power. (Source: South China Morning Post)

Canada Unveils Strategy to Award 70% of Defense Contracts to Domestic Firms Within 10 Years

Canada announced a defense industrial strategy based on "build, partner, buy" principles, targeting 70% of federal defense contracts to domestic firms within 10 years. The move came shortly after the U.S. formally warned the EU against its "European preference" defense procurement policies. (Source: CBC)

Environment

U.S. EPA Repeals Greenhouse Gas Endangerment Finding - Removes Legal Basis for Federal Carbon Regulations

The EPA issued a final rule repealing the Endangerment Finding, which was based on a 2007 Supreme Court ruling and recognized the health risks of greenhouse gases. This removes the legal foundation for all federal carbon regulations, including vehicle emissions, power plants, and oil/gas extraction. The Attorneys General of California and Massachusetts plan to request an immediate stay from the D.C. Circuit Court of Appeals. (Source: Inside Climate News)

Social

K-pop Dominates IFPI Global Album Sales Chart with 7 of Top 10

K-pop albums claimed 7 of the top 10 spots in the IFPI 2025 Global Album Sales Chart. Stray Kids ranked 2nd, Seventeen 3rd, and Enhypen 4th. Expanding to the top 20, NCT Wish (11th), &Team (13th), Riize (15th), and aespa (16th) also made the list. (Source: Yonhap News)

BLACKPINK Becomes First YouTube Artist Channel to Reach 100 Million Subscribers

BLACKPINK became the first official artist channel on YouTube to reach 100 million subscribers. The group has surpassed 41.1 billion total views and holds nine music videos in the Billion Views Club. (Source: Yonhap News)

Southeast Asia's #SEAbling Anti-Korean Boycott Movement Spreads

Anti-Korean boycott movements are spreading across Malaysia, Indonesia, and Thailand under the #SEAbling hashtag. A post mocking Koreans recorded 83 million views, with the movement taking on a pan-Southeast Asian solidarity character. (Source: South China Morning Post)

Iran Protest Deaths Exceed 7,000, 30 UN Special Rapporteurs Issue Joint Condemnation

According to U.S.-based HRANA, over 7,000 people have died in Iranian protests, with approximately 12,000 additional cases under investigation. At least 230 children and adolescents have been killed, and 30 are facing the death penalty. Thirty UN Special Rapporteurs issued a joint statement demanding disclosure of the whereabouts of tens of thousands of detainees and disappeared persons. (Source: Al Jazeera)