The US Supreme Court on Friday, February 20, 2026, ruled 6–3 that former President Donald Trump’s sweeping global tariffs imposed under the International Emergency Economic Powers Act (IEEPA) were illegal, striking down most of the measures.
The decision halts the 10%+ reciprocal duties levied on imports from more than 90 countries, which had been introduced as part of a push to boost US manufacturing. The majority opinion, led by conservative justices including Chief Justice John Roberts, rejected the broad use of executive emergency authority without explicit congressional approval.
While the ruling voids the wider tariff regime covering sectors such as automobiles and textiles, existing steel and aluminium tariffs remain in place. The broader tariffs have been struck down retroactively. Lower courts had earlier blocked the measures, and the Supreme Court’s verdict finalizes the matter following arguments in November 2025, when several justices had already expressed skepticism.
Market reaction and India impact
US markets initially reacted negatively, with the Dow Jones slipping 1.2%, though import-heavy companies saw gains.
For India, the ruling offers relief on exports worth over $10 billion, including auto components and pharmaceuticals shipped to the US. Market participants expect the Sensex to react positively when trading resumes Monday. Refund liabilities exceeding $175 billion may now arise due to the retroactive nullification of the tariffs.
More details are awaited. This is a developing story.
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