Paper: GS – II, Subject: International Relations, Topic: Global issues, Issue: US Supreme Court Ruling on Tariffs.
Context:
The U.S. Supreme Court struck down President Donald Trump’s sweeping “reciprocal tariffs” imposed under the 1977 International Emergency Economic Powers Act (IEEPA).
- 6–3 majority ruling: Chief Justice John Roberts wrote: The Constitution clearly vests taxing powers: including tariffs – in Congress, not the Executive.
Key Takeaways:
| International Emergency Economic Powers Act (IEEPA), 1977: Originally enacted to grant the U.S. President authority to regulate commerce in response to unusual and extraordinary threats from abroad. Designed mainly for emergencies such as terrorism, hostile foreign actions, or serious threats to U.S. national security. Trump invoked IEEPA to impose tariffs on a wide range of imports, arguing that economic threats (like unfair trade practices) qualified as national emergencies. |
Revenue from Tariffs:
- Record Collections (2025): U.S. collected $289 billion from tariffs & excise taxes a sharp rise from previous years.
- IEEPA Tariffs Contribution: Estimated $142 billion in 2025 from tariffs imposed under IEEPA.
- Fiscal Impact:
- Tariffs significantly boosted U.S. government revenues.
- Became a key fiscal instrument alongside trade policy.
The Supreme Court ruling limits executive tariff powers, challenges the Trump administration’s trade approach, reinforces Congress’s role, and creates uncertainty over refunding billions reshaping U.S. trade policy with lasting global implications.
Source: (The Indian Express, The Hindu)
La Excellence IAS Academy, the best IAS coaching in Hyderabad, known for delivering quality content and conceptual clarity for UPSC 2026 preparation.
FOLLOW US ON:
◉ YouTube : https://www.youtube.com/@CivilsPrepTeam
◉ Facebook: https://www.facebook.com/LaExcellenceIAS
◉ Instagram: https://www.instagram.com/laexcellenceiasacademy/
GET IN TOUCH:
Contact us at info@laex.in, https://laex.in/contact-us/
or Call us @ +91 9052 29 2929, +91 9052 99 2929, +91 9154 24 2140
OUR BRANCHES:
Head Office: H No: 1-10-225A, Beside AEVA Fertility Center, Ashok Nagar Extension, VV Giri Nagar, Ashok Nagar, Hyderabad, 500020
Madhapur: Flat no: 301, survey no 58-60, Guttala begumpet Madhapur metro pillar: 1524, Rangareddy Hyderabad, Telangana 500081
Bangalore: Plot No: 99, 2nd floor, 80 Feet Road, Beside Poorvika Mobiles, Chandra Layout, Attiguppe, Near Vijaya Nagara, Bengaluru, 560040