politics
February 20, 2026
Supreme Court overturns Trump's tariffs
Nearly a year after President Donald Trump unilaterally imposed the steepest tariffs on American consumers in a century with his “Liberation Day” invocation of the International Emergency Economic Powers Act, the Supreme Court held that IEEPA does not authorize the president to impose tariffs and remanded for further proceedings. In a 6-3 ruling, the majority opinion, authored by Chief Justice John Roberts, decided that because “IEEPA contains no reference to tariffs or duties,” not even a national emergency justification gives the president the power to impose a tariff under the statute.
TL;DR
- The Supreme Court, in a 6-3 ruling, determined that the International Emergency Economic Powers Act (IEEPA) does not authorize the president to impose tariffs.
- The ruling means President Trump's IEEPA tariffs cannot be enforced in the future.
- The Court did not order the U.S. Treasury to refund the estimated $175 billion collected under these tariffs, avoiding a substantial increase to the federal budget deficit.
- The case was remanded to lower courts for further proceedings regarding refunds, creating uncertainty about how much money will ultimately be returned to importers.
- Refunds are more likely for 'unliquidated entries' (imports whose customs bills are not finalized) than for 'liquidated entries' due to unfavorable deadlines.
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