In a 6-3 ruling on February 20, 2026, the Supreme Court determined that the International Emergency Economic Powers Act (IEEPA) does not authorize tariff action, striking down the country-specific reciprocal tariffs imposed in 2025 while reinforcing that Congress holds primary authority over duties. The decision leaves existing Section 232 national security tariffs on steel, aluminum, copper, and derivatives fully intact, meaning core metals trade measures remain unchanged despite the broader legal shift.
Although the ruling removes one layer of tariffs, it does not resolve whether importers will receive refunds for duties already collected. That issue is expected to move through further proceedings before the Court of International Trade, creating continued uncertainty for manufacturers that absorbed tariff costs throughout supply chains. The Court’s decision also places pressure on policymakers to rely more heavily on trade statutes that explicitly authorize tariff action, accelerating discussion of alternative authorities.
In response, the administration imposed a temporary 10 percent import duty under Section 122 of the Trade Act of 1974, effective February 24 for up to 150 days. The measure applies broadly to imports but excludes several categories relevant to industrial supply chains, including USMCA-compliant goods and products already subject to Section 232 tariffs. As a result, the new Section 122 duties do not stack on top of the existing Section 232 duties. However, the surcharge does stack on top of Most Favored Nation (MFN) duties, Section 301 tariffs, and AD/CVD orders, and the current order suggests it layers on top of existing negotiated rates unless expressly exempted – such as is the case with Section 232 tariffs. Administration officials framed the action as a balance-of-payments measure intended to stabilize trade flows and encourage domestic production while longer-term tariff strategies are developed.
At the same time, policymakers are increasingly looking to Section 301 of the Trade Act of 1974 as a potential pathway for additional tariffs. Section 301 actions require a more formal investigative process but allow the United States to target specific countries or practices deemed unfair. The administration has already initiated a Section 301 case involving Brazil and is widely expected to consider broader use of the authority throughout 2026, potentially affecting industrial supply chains and metals-intensive manufacturing sectors depending on the scope of future investigations.
The revolving tariff landscape underscores a continued layering of trade tools rather than a broader rollback of protection measures with Section 232 tariffs remaining in place, a temporary Section 122 tariff now active, and the possibility of expanded Section 301 actions ahead.
EPA Withdraws 2009 GHG Endangerment Finding
The Environmental Protection Agency (EPA) has issued a final rule, published in the Federal Register on February 18, 2026, rescinding the agency’s 2009 greenhouse-gas (GHG) endangerment finding for motor vehicles and repealing federal GHG emission standards covering light-, medium-, and heavy-duty vehicles and engines. The action removes EPA’s prior determination under Clean Air Act Section 202(a)(1) that greenhouse-gas emissions from new motor vehicles contribute to air pollution that endangers public health and welfare. The agency also eliminates model year–based GHG requirements that had applied to vehicles beginning with model year 2012, effectively withdrawing standards established through multiple prior rulemakings.
According to EPA, the rule reflects the agency’s view that the Clean Air Act was designed to address domestic air pollutants rather than to regulate global climate change. In its explanation, the agency cites statutory limits and the “major questions doctrine,” asserting that broad climate policy decisions should be made by Congress rather than through agency action under existing Clean Air Act authorities. EPA emphasized that the rule does not establish a new scientific endangerment determination, but instead withdraws the previous finding and the regulatory framework that relied on it.
The rule repeals federal greenhouse-gas emission standards for a wide range of on-road vehicles and engines, including light-duty passenger vehicles as well as medium- and heavy-duty commercial vehicles. By removing these requirements, the agency is eliminating federal GHG performance standards that had served as the foundation for national vehicle emissions policy for more than a decade.
The final rule is scheduled to take effect on April 20, 2026. EPA indicated that future climate-related policy responses should be addressed through legislative action, signaling a significant shift in the agency’s regulatory approach to greenhouse-gas emissions from the transportation sector.
EPA Revokes Biden-Era Mercury Rule
The Environmental Protection Agency has finalized a rule determining that the Biden administration’s tighter Mercury and Air Toxics Standards (MATS) for coal- and oil-fired power plants are not “necessary and appropriate” under the Clean Air Act, reversing key elements of the 2024 update. EPA said existing standards adopted in 2012 already achieve significant reductions in mercury and other hazardous air pollutants, and the agency concluded that the additional compliance costs tied to the newer requirements were not justified.
In its analysis, EPA acknowledged projections that emissions could be higher without the strengthened limits but maintained that the incremental environmental benefits were uncertain and outweighed by economic and reliability concerns. The decision aligns with the administration’s broader review of power-sector rules and reflects a renewed emphasis on cost considerations in regulatory determinations.
The rollback is expected to draw legal challenges from environmental groups and some states, potentially setting up another round of litigation over how EPA evaluates technology reviews and cost-benefit analyses under Clean Air Act Section 112.
DOL Launches $145 Million Pay-for-Performance Apprenticeship Incentive Program
The U.S. Department of Labor (DOL) has launched a new funding initiative aimed at accelerating expansion of Registered Apprenticeship programs across several high-demand industries. The Pay-for-Performance (PfP) Incentive Payments Program, administered by the Employment and Training Administration, will provide up to $145 million through cooperative agreements designed to scale apprenticeship participation using outcome-based funding models.
Under the program, DOL expects to award up to five cooperative agreements. Rather than traditional grants, the initiative will provide incentive payments tied to measurable growth in apprenticeship enrollment, with organizations encouraged to design payment structures that support rapid expansion of new programs and substantial growth of existing Registered Apprenticeships. The department said the approach is intended to reduce barriers for employers and apprenticeship sponsors seeking to develop or expand programs.
Targeted sectors include shipbuilding and the defense industrial base; artificial intelligence, semiconductor, and nuclear energy infrastructure; information technology; healthcare; transportation; and telecommunications. DOL officials signaled a particular interest in expanding apprenticeship opportunities tied to shipbuilding and defense manufacturing, while one cooperative agreement will focus on scaling apprenticeship growth across industries not specifically listed.
The PfP program is part of a broader federal strategy to expand the National Apprenticeship System and support a goal of surpassing one million active apprentices nationwide. According to the department, the initiative builds on recent workforce development efforts, including the American Manufacturing Apprenticeship Incentive Fund, and aims to facilitate participation by small and mid-sized employers that may not typically pursue federal grant funding. Eligible applicants include higher-education institutions, industry associations, workforce intermediaries, nonprofits, state agencies, and private organizations. Applications are due by April 3, 2026.