The US Supreme Court issued a major decision on February 20, 2026, ruling that President Donald Trump exceeded his authority by imposing broad global tariffs under an emergency powers law. The 6–3 majority held that the International Emergency Economic Powers Act (IEEPA) does not give the president the power to enact sweeping import taxes without clear congressional authorization, reaffirming that the Constitution assigns tariff authority to Congress, according to Ann E. Marimow of The New York Times.
The ruling undercuts a central plank of Trump’s economic agenda, could affect billions in previously collected tariffs, and may prompt legal action by businesses seeking refunds, while still allowing the administration to pursue narrower tariff powers under other statutes. The NYT writes:
The Supreme Court ruled Friday that President Trump exceeded his authority when he imposed sweeping tariffs on imports from nearly every U.S. trading partner, a major setback for his administration’s second-term agenda.
The court’s 6-3 decision has significant implications for the U.S. economy, consumers and the president’s trade policy. The Trump administration had said that a loss at the Supreme Court could force the government to unwind trade deals with other countries and potentially pay hefty refunds to importers.
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