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On February 20, 2026, the U.S. Supreme Court delivered a landmark 6–3 decision striking down sweeping global tariffs imposed by former President Donald J. Trump. The majority ruled that the legal authority Trump relied on — the 1977 International Emergency Economic Powers Act (IEEPA) — does not give the president unilateral power to impose broad import taxes on goods from nearly all trading partners.�Reuters
Chief Justice John Roberts, writing for the majority, emphasized that the U.S. Constitution clearly assigns the power to levy taxes and tariffs to Congress, not the executive branch. The Court also applied the major questions doctrine, which states that the executive cannot use vague statutory language to justify sweeping actions of significant economic impact.�
🧑‍⚖️ Key Legal Findings
IEEPA does not authorize the type of broad tariff program Trump instituted — its emergency powers are meant for narrow national emergencies, not broad trade policy changes.�mintThe majority held that tariff authority — a form of taxation — belongs to Congress under Article I of the Constitution.�euronewsTariffs that were based on other statutes (such as national security tariffs under the Trade Expansion Act of 1962) remain unaffected by this ruling.�TIME
⚖️ Dissenting Opinions
Three justices — Brett Kavanaugh, Clarence Thomas, and Samuel Alito — dissented. They argued that the IEEPA and long-standing practices authorize the president to impose tariffs as part of managing international trade during emergencies, questioning whether invalidating the tariffs would significantly limit executive power going forward.�Business Insider
💥 Political Fallout and Reactions
🇺🇸 Trump’s Response
Former President Trump reacted with anger. He publicly criticized the Court as a “disgrace to our nation” and its justices as “fools and lapdogs,” attacking especially those conservative justices who joined the majority.�
TIME
Almost immediately, Trump announced a new 10% global tariff using different statutory authority — specifically citing sections of the Trade Act of 1974 that allow temporary tariffs under certain conditions. He vowed that his administration would continue to impose tariffs using alternative legal routes.�
🏛️ Political Responses
Democrats and trade groups welcomed the ruling as a reaffirmation of Congressional authority and the rule of law.�Los Angeles TimesSome Republicans expressed concern that the decision will curtail presidential flexibility in trade policy.Legal scholars called it a major check on executive power, comparing its significance to historic rulings limiting presidential overreach.�The Washington Post
📉 Economic and Global Trade Implications
💰 Tariff Revenue and Refund Issues
Tariffs implemented under Trump had generated tens of billions — potentially over $100 billion — in revenue. Now, questions remain about whether importers will be entitled to refunds for tariffs collected on goods now deemed unlawfully taxed. Legal experts have warned that such refund processes could be complex and messy.�
🌍 Global Trade Impact
The ruling introduces uncertainty in international markets. Some tariffs remain in force — particularly those justified on national security grounds — but the most expansive part of Trump’s trade agenda is invalidated. It may reduce tariff-related barriers and tensions with major trading partners, though Trump’s new tariff strategy could reintroduce some duties.�TIME
📌 What This Means Going Forward
Separation of powers: The decision is widely seen as a reaffirmation of Congressional authority over trade and taxation — important constitutional powers that cannot be ceded lightly to the executive.�euronewsPolicy shift: While Trump and his allies can still pursue tariffs, they must rely on narrower, more specific statutes that prescribe detailed requirements, hearings, and investigations, rather than broad emergency powers.�TIMELegal precedent: This case could influence future disputes over executive authority in areas far beyond trade, especially where presidents attempt to wield broad powers without explicit congressional authorization.�
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