US Supreme Court Strikes Down Trump Tariffs; President Raises New 15% Global Duty

According to media reports, the Supreme Court of the United States on February 20 ruled that former President Donald Trump exceeded his authority by imposing country-specific tariffs under the International Emergency Economic Powers Act (IEEPA). In a 6–3 decision, the court held that the 1977 emergency powers statute does not give the president unilateral authority to impose sweeping tariffs on nearly all US trading partners without congressional approval.

As a result of the ruling, country-based duties ranging from 10% to 50% are set to be removed. The decision does not affect separate sectoral tariffs of up to 50% on steel, aluminum and copper, which had been enacted under a different legal framework.

The Supreme Court decision marked a rare instance of the judiciary curbing the Trump administration’s trade actions. It also raised fresh uncertainty about the fate of billions of dollars already collected in tariffs, as the justices did not clarify whether refunds will be required. Business groups generally welcomed the ruling, saying it provided greater legal clarity, while dissenting conservative justices cautioned that it could disrupt ongoing trade negotiations.

A day later, on February 21, President Trump announced a new global import duty of 15%, invoking an alternative legal pathway. In a post on Truth Social, he described the move as raising tariffs “to the fully allowed, and legally tested, 15% level.” The new levy, permitted for up to 150 days under US law, maintains exemptions for goods covered by the US-Mexico-Canada Agreement (USMCA) and sectors under separate investigations, including pharmaceuticals.

These back-to-back developments highlight escalating tensions between the executive branch and the judiciary as the Trump administration presses ahead with its aggressive trade agenda despite legal setbacks.

Stay ahead of market trends with the Credco app. For any queries, please reach out to us via WhatsApp at ‪+918448083211‬.