Supreme Court rules most Trump tariffs illegal in major setback for economic agenda

February 20, 2026

TL;DR

The Supreme Court ruled 6-3 that President Trump cannot unilaterally impose tariffs on nearly every country under the International Emergency Economic Powers Act (IEEPA).
Chief Justice John Roberts stated that IEEPA contains no reference to tariffs and has not previously been interpreted to grant such presidential power.
The ruling upholds a previous decision by the U.S. Court of Appeals for the Federal Circuit, deeming Mr. Trump's tariffs illegal.
Justices Brett Kavanaugh, Clarence Thomas, and Samuel Alito dissented, arguing that tariffs are a traditional tool for regulating importation, a power specified in IEEPA.
This decision is considered the most significant loss for President Trump's second-term policies thus far.
The ruling does not prevent the president from imposing tariffs under different trade authorities, and he has utilized other laws for levies on goods like copper, steel, and aluminum.
Mr. Trump invoked IEEPA's emergency powers for the tariffs, citing trade deficits and the flow of illicit drugs.
The U.S. generated significant tariff revenue in fiscal year 2025, and businesses are seeking refunds.
An analysis found that U.S. companies and consumers bore nearly 90% of the tariffs' burden last year, with average import levies increasing significantly.

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