EconomyInternational Relations
News 6 of 23

US Supreme Court Strikes Down Trump's IEEPA Tariffs, New 10% Tariff Imposed Under Trade Act Section 122

Target:UPSC GS-IIIMPSCSSC GATeachingPrelims HighMains HighStatic GK Link
21 Feb 2026
~2 min
Source: Indian Express
Key Data:10% tariff150 days15% tariff55% of India's exports
Bodies:US Supreme CourtWhite HouseGTRI
Practice MCQs from today's news ▸
What This Article Covers

1.The US Supreme Court struck down President Trump's use of the International Emergency Economic Powers Act (IEEPA) to impose tariffs, curtailing executive power on trade.

2.Trump immediately invoked Section 122 of the Trade Act of 1974 to impose a temporary 10% tariff on almost all US imports for up to 150 days.

3.The ruling undermines leverage from previous 'reciprocal tariffs' and forces a review of trade deals, including the one under negotiation with India, as global trade enters a new legalistic phase.

The Big Picture
Prelims · HighMains · High

The US Supreme Court has invalidated President Trump's use of the IEEPA for imposing tariffs, restoring Congressional primacy in trade policy. In response, Trump invoked Section 122 of the Trade Act of 1974 to impose a new 10% global tariff, reshaping trade dynamics. This legal shift forces a recalibration of US trade strategy and impacts ongoing deals with India, Japan, and the EU.

Exam Lens

Quick Exam Facts From News

New Tariff Rate10%
Legal Provision UsedSection 122, Trade Act of 1974
Duration Limit150 days
Struck-Down LawInternational Emergency Economic Powers Act (IEEPA)
Other Tariff ProvisionsSection 232 (Trade Expansion Act 1962), Section 301 (Trade Act 1974)

1-Minute Revision

  • ›New Tariff Rate: 10%
  • ›Legal Provision Used: Section 122, Trade Act of 1974
  • ›Target this Data: 10% tariff rate under Section 122, 150-day limit.
  • ›Target this Nodal Body: US Supreme Court (struck down IEEPA tariffs).
  • ›Target this Legal Point: International Emergency Economic Powers Act (IEEPA) of 1977 vs. Section 122 of Trade Act of 1974.

Mastered this topic? Test your knowledge with a full MCQ quiz.

Practice exam-style questions, track your score, and strengthen your recall.

Q1Static LinkageEasy

Which U.S. law, struck down by the Supreme Court for imposing tariffs, had never been used for that purpose by any previous President?

Q2Statement-basedHard

Consider the following statements regarding the recent US Supreme Court ruling and its aftermath:

1. The ruling invalidated all tariffs imposed by the Trump administration, including those on steel and aluminium.

2. Following the ruling, President Trump imposed a new 10% tariff on all imports using Section 122 of the Trade Act of 1974.

3. The new tariff under Section 122 can be imposed for a maximum period of 150 days.

Which of the statements given above is/are correct?

Q3Data-centricMedium

According to the article, what is the maximum tariff rate and duration allowed under Section 122 of the Trade Act of 1974, which President Trump invoked?

Q4Application/ImpactMedium

What is a primary implication of the US Supreme Court's ruling on IEEPA tariffs for India's trade negotiations with the US, as per the analysis in the article?

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