The U.S. Supreme Court on 20 February 2026 ruled that the IEEPA does not empower the President to impose tariffs, invalidating the sweeping duties announced by President Donald Trump in 2025. The judgment re‑affirms the constitutional role of Constitution in granting tariff authority to Congress and limits executive overreach.
मुख्य विकास
- The Court, in a 6‑3 decision, held that tariffs must have clear statutory backing, which IEEPA lacks.
- Trump’s administration quickly announced a temporary import duty under alternative statutes, effective 24 February for 150 days.
- Potential refunds are being sought by over 1,000 companies after an estimated $180 billion was collected under the invalidated duties.
महत्वपूर्ण तथ्य
Before 2025, IEEPA had been used to freeze assets, block transfers and sanction hostile regimes, but never to levy tariffs. Trump invoked IEEPA after declaring national emergencies linked to drug trafficking and trade imbalances, imposing 25% duties on Canada and Mexico, 10% on China, and a reciprocal tariff of at least 10% on most partners, with higher rates for some, notably India.
Post‑ruling, the Treasury cited three alternative authorities:
- Section 122 (Trade Act 1974)
- Section 301 (Trade Act 1974)
- Section 232 (Trade Expansion Act 1962)