What to expect after the landmark United States Supreme Court tariff ruling?

On 20 February 2026, the United States (US) Supreme Court ruled, in a landmark case, that the US International Emergency Economic Powers Act (IEEPA) of 1977 does not authorise the US president to impose tariffs. The ruling invalidates all tariffs that President Trump imposed under IEEPA on US trading partners, including the April 2025 ‘reciprocal’ tariffs. The ruling is without prejudice to the US sector- and country-specific tariffs that have been levied under different legal bases. While the ruling confirms the US checks and balances and the rule of law, it is silent on the potential refunding of tariffs that have already been collected. The ruling is likely to prompt US trading partners to seek clarity or even the renegotiation of the agreements recently reached with the US.

February 24, 2026
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