Supreme Court Strikes Down Tariffs. Trump Ignores the Ruling.
On February 20, 2026, the Supreme Court ruled 6-3 that President Trump violated federal law by imposing sweeping global tariffs under the International Emergency Economic Powers Act of 1977. Chief Justice John Roberts wrote the majority opinion, joined by Justice Barrett, Justice Gorsuch, and the three liberal justices. Justices Thomas, Alito, and Kavanaugh dissented.
The U.S. Customs and Border Protection agency had already collected $133 billion in IEEPA tariffs. Companies are now lining up for refunds.
Trump's response: he called the justices a "disgrace," then signed a new 10 percent global tariff using a different legal authority. The new tariffs take effect February 24.
CNBC: Supreme Court Strikes Down Trump Tariffs
The Ruling
The Court found that IEEPA, which grants the president emergency powers over international financial transactions, does not authorize tariffs. Tariffs are taxes. Taxes require congressional approval under Article I of the Constitution. The president invoked an emergency that did not exist under the terms of the statute and used it to impose costs that the law does not permit.
Roberts's majority opinion was described as the most significant check on executive trade authority in decades. Three Trump-appointed justices — Roberts, Barrett, and Gorsuch — sided with the majority. Only Thomas, Alito, and Kavanaugh argued the president had the authority.
The $133 Billion Question
Businesses that paid IEEPA tariffs will seek refunds. The amount collected — $133 billion — makes this one of the largest tax refund events in American history. The logistics of processing those refunds will take months or years. Small businesses that absorbed tariff costs and passed them to consumers cannot easily unwind those price increases.
A Washington Post-ABC News-Ipsos poll found Americans disapprove of Trump's tariff handling 64 percent to 34 percent.
NPR: Companies Line Up for Refunds After Supreme Court Strikes Down Tariffs
The Replacement Tariffs
Hours after the ruling, Trump signed a new executive order imposing a 10 percent global tariff under a different statutory authority — Section 301 of the Trade Act of 1974. This law grants the president power to impose tariffs in response to unfair trade practices. Legal challenges are expected immediately.
The pattern is now established: the Court strikes down one mechanism, the president invokes another, and the cycle continues. The tariffs remain. The legal authority changes. The economic impact persists.
What It Means
The ruling is a constitutional landmark: the Supreme Court explicitly rejected the use of emergency powers to impose tariffs. But the practical effect may be limited if the president can achieve the same result through alternative statutory channels.
Six justices — including three appointed by Trump — told the president he exceeded his authority. The president's response was to find different authority and do it again. The question is no longer whether tariffs are legal. It is whether any court ruling can actually stop them.