1. U.S. Supreme Court Strikes Down Trump’s Emergency Tariffs: An Analysis

The U.S. Supreme Court (SCOTUS), in a landmark 6-3 ruling on February 20, 2026, invalidated the sweeping \'reciprocal\' tariffs imposed by President Donald Trump. The court held that the executive branch overstepped its constitutional mandate by using emergency laws to levy taxes, a power reserved exclusively for the legislature. Key Summary Points for UPSC • Judicial Overrule of Executive Action: The court nullified tariffs imposed under the International Emergency Economic Powers Act (IEEPA) of 1977, ruling that \'regulating\' commerce does not equate to the power to \'tax\' or \'impose duties.\' • Separation of Powers: Chief Justice John Roberts emphasized that the U.S. Constitution vests the Taxing Power solely in Congress (Article I), and the President has no inherent authority to impose tariffs during peacetime. • The \'Major Questions\' Doctrine: The majority applied this doctrine, asserting that for issues of \'vast economic and political significance,\' the executive must have clear, explicit authorization from Congress, which the IEEPA lacked regarding revenue generation. • Economic Impact: The ruling affects over $133 billion in collected revenue (as of late 2025) and impacts broad reciprocal duties levied on almost every trading partner, including India. • India-Specific Context: While the specific \'reciprocal\' tariffs (which at one point reached 18-25% for India) were struck down, a new 10% temporary global surcharge was immediately proposed by the administration under Section 122 of the Trade Act of 1974. • Survival of Other Levies: The ruling does not affect tariffs imposed under other specific laws, such as Section 232 (National Security) or Section 301 (Unfair Trade Practices), which remain in force. Constitutional & Legal Provisions • U.S. Constitution (Article I, Section 8): Grants Congress the power to lay and collect Taxes, Duties, Imposts, and Excises. • International Emergency Economic Powers Act (IEEPA), 1977: A law intended to let the President freeze assets or block financial transactions during national emergencies; the court ruled this cannot be used as a \'switch\' to rewrite the tariff code. • Section 122 (Trade Act of 1974): Allows the President to impose a temporary import surcharge (up to 15%) for 150 days to address balance-of-payment deficits.• Major Questions Doctrine: A principle used by the judiciary to reject agency/executive actions that have major economic impact unless Congress has clearly spoken on the matter. Key Definitions • Reciprocal Tariffs: Trade duties imposed by a country on imports from another country specifically to match the tariff levels that the second country imposes on its own exports (the \'eye-for-an-eye\' trade policy). • Ad Valorem Tax: A tax whose amount is based on the value of a transaction or of property (e.g., a 10% tariff on the value of an imported car). • Emergency Powers: Statutory authorities granted to the Executive to act quickly during crises, which often face legal scrutiny when used for long-term economic policy. Conclusion The SCOTUS ruling marks a significant check on executive overreach, reinforcing the principle that traderelated taxation is a legislative prerogative. For global trade, this brings a temporary reprieve from the \'reciprocal\' regime but introduces a new phase of litigation and uncertainty as the administration pivots to alternative legal statutes (like Section 122) to maintain its protectionist agenda. UPSC Relevance • General Studies II (International Relations): Impact of U.S. trade policies on India-U.S. bilateral relations and global trade stability. • General Studies II (Polity): Comparative study of \'Separation of Powers\' and \'Executive vs. Legislative\' authority in democratic setups (U.S. vs. India). • General Studies III (Economy): Effect of global tariff wars on Indian exports, MSMEs, and the broader global supply chain.