Judicial check on trade authority: IEEPA (reciprocal) tariffs rescinded in the US by the Supreme Court

In brief

Notably, the United States (US) Government had imposed ‘reciprocal tariffs and certain fentanyl/ drug-trafficking-related tariffs’ using powers under the International Emergency Economic Powers Act (IEEPA). On 20 February 2026¹, the US Supreme Court held that the IEEPA does not authorise the President to impose tariffs, reaffirming that Article I, section 8 of the US’s Constitution vests customs powers in the Congress.

The decision invalidated IEEPA-based ‘reciprocal’ tariffs (addressing trade deficits) and drug trafficking or fentanyl-related tariffs on imports from multiple countries, including India. 

In response, the administration revoked the IEEPA tariffs by Executive Order and invoked section 122 of the Trade Act of 1974 (Trade Act) to impose a temporary 10% across-the-board tariff for up to 150 days, subject to statutory exclusions and product limits (this is anticipated to be further increased to 15% from an upcoming date).  

Sectoral tariffs under other statutory authorities (e.g. national security or safeguard laws) were not challenged and remain unaffected.