INDIA · WORLD & POLITICS
US Supreme Court voids Trump IEEPA tariffs
Change
The U.S. Supreme Court struck down President Trump’s “Liberation Day” tariffs imposed under IEEPA for lack of statutory authority.
Why it matters
The decision creates a defined refund-claim window for duties collected under the invalidated tariff regime, with importers able to challenge liquidated entries via protests and subsequent litigation pathways. That shifts near-term cash-flow and pricing assumptions for supply chains tied to high-duty categories in 2025 (notably autos/parts, electronics, and apparel/textiles). The Court’s clarification that broad tariff authority needs explicit Congressional sanction introduces legal uncertainty around the durability of executive-negotiated trade arrangements, even if existing agreements remain in place. Separately, Trump announced a new across-the-board tariff under Section 122 that can run up to 15% for 150 days without Congress, after which continuation becomes a Congressional decision point.
Implications
- • Refund/protest exposure for duties collected Apr 2, 2025–Feb 20, 2026
- • 150-day cap on Section 122 tariffs creates a fixed renewal decision point
- • Higher litigation/administrative load for Customs protests and trade counsel
- • Effective duty costs may reset for autos/parts, electronics, apparel/textiles
Who is affected
- • U.S. importers that paid IEEPA-based duties (especially China-linked supply chains)
- • Exporters to the U.S. from EU, UK, Japan, Vietnam, and India
- • U.S. Customs brokers and trade compliance/legal teams
- • Automotive, electronics, and apparel/textiles manufacturers and distributors
Source
Read original → The Hindu
Topics
World & Politics Policy & Regulation Trade & Tariffs Law & Public Safety Court Rulings