US Supreme Court invalidates majority of Trump tariffs, citing overreach of emergency powers | World News

In a major blow to former President Donald Trump, the U.S. Supreme Court ruled Friday that the Trump administration exceeded its legal authority by imposing broad tariffs under a law intended for genuine national emergencies. The decision eliminated most of the controversial trade measures and clarified the limits of the president’s power in economic policy.

The court ruled that Trump’s tariffs on goods entering the United States were not authorized under the 1977 International Emergency Economic Powers Act (IEEPA). But the decision does not eliminate all tariffs under his administration. Duties imposed by separate legal authorities on steel and aluminum remain in force.

But the decision reverses two major categories of tariffs, providing significant relief on more than $50 billion of India’s exports to the US. These include country-specific “reciprocal” tariffs capped at up to 50% on Indian goods (a 25% base rate plus a 25% penalty tied to Russian oil imports) and a 25% tariff on some imports that the administration says is aimed at pressuring countries to stop smuggling fentanyl.

Previously, a US-India interim agreement signed in February 2026 had already reduced bilateral duties to 18% and created zero tax cuts for medicines. The Supreme Court’s decision now accelerates broader aid and could open the door to refunds of the nearly $130 billion collected under IEEPA as of mid-December.

Trump still has the option of reimposing similar tariffs using different legal authorities. IEEPA-based tariffs had generated nearly $130 billion in revenue through mid-December, according to the latest data from U.S. Customs and Border Protection. But Trump cited much higher figures, up to $3 trillion, by including the value of trade deals negotiated during his administration.

India-US interim trade agreement

The decision comes just days after the US and India announced an interim trade agreement framework aimed at creating more balanced and mutually beneficial trade.

Under the proposed deal, India agreed to cut or eliminate tariffs on all U.S. industrial products and a broad list of American agricultural and food products. These include dried distillers grains (DDGs), red sorghum used as animal feed, tree nuts, fresh and processed fruits, soybean oil, wine and spirits, and some other products.

In return, the United States will impose an 18% reciprocal duty on goods originating from India under Executive Order 14257 (as amended). Affected categories include textiles and apparel, leather and footwear, plastic and rubber products, organic chemicals, home decoration products, craft products and certain machinery.

The United States also stated that it plans to eliminate reciprocal tariffs on a wide range of additional Indian products listed in the Potential Tariff Adjustments for Connected Partners appendix of Executive Order 14346 (as amended) once the interim agreement is fully concluded. These include generic drugs, gems and diamonds, and aircraft parts.