GLOBAL · WORLD & POLITICS
Supreme Court blocks Trump’s IEEPA-based tariffs
The Conversation
22 Feb · 2:12 AM
Change
On Feb. 20, 2026, the U.S. Supreme Court ruled 6–3 that President Trump’s use of the International Emergency Economic Powers Act to unilaterally impose broad tariffs was unconstitutional, invalidating those tariffs.
Why it matters
The decision removes the legal basis for the “reciprocal” tariff regime and other IEEPA-linked tariffs used since January 2025, including rates cited as 34% on China and a 10% baseline on much of the rest of the world. It also invalidates a 25% tariff applied to some goods from Canada, China, and Mexico tied to fentanyl-related claims. The ruling implies U.S. tariff schedules roll back to the pre–April 2, 2025 levels for the affected measures, changing landed-cost assumptions embedded in contracts, pricing, and inventory planning. The court left key questions unresolved about what alternative statutory pathways remain available for future tariff actions, keeping legal and policy uncertainty around replacement measures.
Implications
- • IEEPA is no longer a viable basis for broad unilateral tariffs
- • Affected tariff lines revert to pre–Apr 2, 2025 schedules
- • Trade negotiations lose a rapid tariff-leverage mechanism
- • Higher litigation risk for future emergency-based tariff actions
Who is affected
- • U.S. importers and retailers with tariff-exposed cost structures
- • Manufacturers with North America/China-linked supply chains
- • Customs brokers, freight forwarders, and trade compliance teams
- • Exporters in Canada, Mexico, and China selling into the U.S.
Source
Read original → The Conversation
Topics
World & Politics Policy & Regulation Trade & Tariffs Law & Public Safety Court Rulings