economy
February 26, 2026
Trump insists trade deals safe after Supreme Court ruling upends tariff authority, but partners aren’t so sure
The Supreme Court decision to strike down Trump's tariffs has thrown fresh confusion over the raft of trade deals negotiated with global partners, stalling trade talks.
TL;DR
- The Supreme Court ruled that Trump exceeded his authority by imposing emergency tariffs under the IEEPA.
- Trump has replaced the struck-down tariffs with a 10% tariff under Section 122 of the Trade Act of 1974.
- The ruling has created uncertainty for bilateral trade agreements structured around IEEPA tariffs.
- Foreign governments are reassessing their positions, with some countries like India and the EU pausing or postponing trade deal finalization.
- Trump has warned countries against backing away from agreements, threatening higher duties under different trade laws.
- The administration is exploring alternative legal pathways, such as Section 301 investigations, to preserve its trade agenda.
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