US Supreme Court Blocks Trump’s IEEPA Tariffs on Trade Partners

The US Supreme Court ruled that President Donald Trump did not have authority under the International Emergency Economic Powers Act (IEEPA) to impose sweeping tariffs on trade partners.

• Supreme Court Verdict: The US Supreme Court (6‑3) ruled that the President lacked authority under IEEPA to impose broad tariffs. 

• • Implication: 
    • The ruling means IEEPA cannot be used as a blanket tariff tool; Congressional approval is required.
    • This invalidates the “Liberation Day” tariffs imposed on 2nd April 2025, affecting global trade and India’s exports.
    • Raises questions about refunds for tariffs already collected and the future of US trade policy.

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About International Emergency Economic Powers Act

• Purpose: Grants the US President authority to act in case of unusual or extraordinary threats originating outside the US that affect national security, foreign policy, or the economy.
• Scope: Allows measures such as freezing assets, imposing sanctions, and controlling imports/exports during a declared national emergency.
• Key Features:
  • Executive powers cannot be used for tariffs without Congressional authorization.
  • Designed to respond to global economic or security threats rapidly.
• Historical Context:
  • Enacted by President Jimmy Carter in 1977 to replace the Trading with the Enemy Act (1917).
  • Previously used for sanctions, e.g., 1979 Iran hostage crisis.
  • As of September 1, 2025, 77 national emergencies have been declared under IEEPA, of which 46 are ongoing.

Alternative Legal Routes to  International Emergency Economic Powers Act

• Section 122, Trade Act 1974: It allows temporary tariffs up to 15% for up to 150 days.
• Section 338, Tariff Act 1930: It Permits tariffs up to 50% on imports from countries with “discriminatory trade practices.”
• Section 232, Trade Expansion Act 1962: It restricts imports harmful to national security.
  • For Example: It is already used for steel & aluminium.
• Section 301, Trade Act 1974: It acts against unfair foreign regulations burdening US trade.

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