WASHINGTON – The U.S. Supreme Court on Friday, February 20, 2026, struck down President Donald Trump's sweeping global tariffs, ruling that his administration overstepped its authority. In a 6-3 decision, the high court determined that the International Emergency Economic Powers Act (IEEPA) does not grant the president power to impose such broad import taxes. The ruling marks a significant blow to a core part of President Trump's economic agenda.
Court Limits Presidential Tariff Authority
Chief Justice John Roberts delivered the majority opinion, stating that the power to impose tariffs, which are a form of taxation, belongs solely to Congress under Article I of the U.S. Constitution. Roberts wrote that IEEPA "contains no reference to tariffs or duties" and cannot bear the weight of such broad presidential power. This decision specifically invalidates tariffs President Trump imposed on nearly all imports, including "reciprocal" duties and those tied to declared emergencies regarding fentanyl trafficking and immigration.[ctvnews+5]
Justices Neil Gorsuch and Amy Coney Barrett, both appointed by President Trump, joined Chief Justice Roberts and the three liberal justices – Sonia Sotomayor, Elena Kagan, and Ketanji Brown Jackson – in the majority. Justices Clarence Thomas, Samuel Alito, and Brett Kavanaugh dissented from the ruling. The court's decision affirms earlier rulings by lower courts, including the U.S. Court of Appeals for the Federal Circuit in August 2025.[chathamhouse+9]
The ruling does not affect all tariffs implemented by the Trump administration. Tariffs imposed under other statutes, such as Section 232 of the Trade Expansion Act of 1962 (used for steel and aluminum imports) and Section 301 of the Trade Act of 1974, remain in effect. Thesespecific tariffs were not part of the legal challenge heard by the Supreme Court.[hklaw+6]
Trump Responds with New Duties
President Trump swiftly reacted to the Supreme Court's decision, calling it "deeply disappointing" and expressing "shame" for certain justices. During a press conference at the White House, he announced immediate plans to impose a new 10% global tariff under Section 122 of the Trade Act of 1974. This alternative authority allows the president to impose temporary import restrictions for up to 150 days to address balance-of-payments emergencies.[ctvnews+8]
The President also confirmed that existing tariffs under Section 232 and Section 301 will continue. His administration plans to initiate new investigations under both Section 232 and Section 301, which could lay the groundwork for additional long-term duties. An Executive Order was issued following the Supreme Court's decision, revoking the IEEPA tariff orders "as soon as practicable" and ending their collection.[calmatters+5]
Billions in Refunds Uncertain
The Supreme Court's ruling leaves open the complex issue of refunds for importers who have already paid the invalidated IEEPA tariffs. Estimates from 2025 suggested these tariffs amounted to more than $200 billion. Whilesome businesses have celebrated the ruling, the court did not directly address whether or how the federal government should provide these refunds.[scotusblog]
Justice Brett Kavanaugh, in his dissenting opinion, suggested that the federal government "may be required to refund billions of dollars to importers." However, the mechanics of any reimbursement process have not been announced and are expected to be complicated. U.S. Customs and Border Protection (CBP) cannot stop collecting tariffs based solely on the Supreme Court's opinion; it needs a direct order from the executive branch.[scotusblog+4]
The decision marks a significant moment for presidential authority in trade policy. While the Supreme Court has limited one avenue for imposing tariffs, President Trump has indicated his intent to use other legal frameworks to continue his trade agenda.[hklaw]
