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The United States Supreme Court has ruled that President Donald Trump’s earlier tariffs imposed under the International Emergency Economic Powers Act were unlawful, declaring that he exceeded his authority by using a law meant for national emergencies. In response, Trump invoked Section 122 of the US Trade Act of 1974 to impose a new 15 percent tariff on all trading partners, effective February 24, 2025. The new levy, which can last 150 days unless extended by Congress, is the first use of this legal authority by any US president.

The ruling has cast uncertainty over multiple trade agreements signed last year with countries including the United Kingdom, India, and the European Union. While some deals, such as those covering UK steel, aluminium, and pharmaceuticals, remain unaffected, others face ambiguity about whether the new 15 percent rate supersedes negotiated terms. Trade lawyer Shantanu Singh noted that the incentive for partners to uphold their deals has diminished following the court’s decision.

The White House said certain goods like beef, tomatoes, fertilisers, and aerospace products will be exempt. Analysts expect the US to use the 150-day window to reassess trade practices and potentially reinstate reciprocal tariffs under other legal provisions.

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