International Trade Compliance Update (Baker McKenzie)

US: Landmark Supreme Court Decision Holds IEEPA Tariffs Invalid

On February 20, 2026 the U.S. Supreme Court ruled 6‑3 that the International Emergency Economic Powers Act does not give the President authority to impose tariffs, invalidating the IEEPA tariffs enacted by President Trump. The majority applied the major questions doctrine, emphasizing that tariff power resides with Congress. In response, the administration issued an executive order imposing a uniform 10% tariff under Section 122 of the Trade Act of 1974 and signaled a possible increase to 15%. The decision opens massive refund litigation and reshapes the administration’s trade‑policy toolkit.