Industry News
"Trade Deals" Under Reciprocal Tariff Framework Have Uncertain (and Maybe Varying) Futures
TweetFeb. 27, 2026
By:
Ashley J. Bodden
On February 20, 2026, The U.S. Supreme Court issued a landmark ruling holding that the International Emergency Economic Powers Act (IEEPA) does not grant the President authority to impose tariffs. As a result, the Court invalidated the administration’s emergency tariff regime, including the “reciprocal tariffs” applied across a wide range of trading partners and the “country-specific tariffs” targeting particular nations (as well as others).
This decision not only reshaped U.S. tariff policy but also unsettled the legal foundation of numerous trade deals made by the administration. In many cases, reciprocal tariff measures were used as leverage to secure concessions on market access, digital trade rules, supply chain commitments, and agricultural exports. With the tariffs now invalidated, counterpart governments are reassessing the potential future of those agreements.
During Trump’s State of the Union address, he asserted that nearly all countries and corporations intend to honor the agreement already reached. However, the international response has been more measured. Just four days after the decision, India announced it would resume talks on a proposed trade with the U.S. as soon as there is more clarity on tariffs. On February 23, the European Parliament stated that it would halt the ratification process of the trade deal it negotiated with the Trump Administration over the summer.
As countries reassess their positions, President Trump issued a warning on Truth Social aimed at countries considering using the Court’s ruling as possible grounds to reconsider their commitment made in response to last year’s tariffs.
“Any Country that wants to 'play games' with the ridiculous supreme court [sic] decision, especially those that have 'Ripped Off' the U.S.A. for years, and even decades, will be met with a much higher Tariff, and worse, than that which they just recently agreed to," he wrote on Truth Social. "Buyer beware."
While the IEEPA-based tariffs have been struck down, the administration has already moved to deploy alternative statutory tools. President Trump invoked Section 122 of the Trade Act to impose temporary tariffs for up to 150 days. In addition, he directed officials to initiate investigations under Section 301 of the Trade Act, which authorizes targeted tariffs in response to specific “unfair” trade practices. These steps suggest that the Trump administration retain significant authority to pursue other aggressive trade enforcement measures.
In reality, some agreements may survive if both sides see a continued economic value. Other may be renegotiated to reflect the change legal landscape.
The following countries concluded framework agreements or trade arrangements with the United States after reciprocal tariffs were imposed:
European Union (EU)
United Kingdom (UK)
It is likely that the treatment that each country gives its commitments will vary by country and potentially by time. For countries receiving a lower 122 tariff rate than they negotiated, there may be great incentive to retain their “deal.” For others the calculation may be more complicated.
If you have any questions of how the new tariffs imposed under Section 122 will impact you company, please reach out to any attorney at Barnes, Richardson & Colburn, LLP.
