Supreme Court blocks Trump's emergency tariffs, billions in refunds may be owed
Ars Technica
by
Ashley Belanger
February 20, 2026
AI-Generated Deep Dive Summary
The Supreme Court ruled Friday that President Donald Trump exceeded his authority by implementing emergency tariffs aimed at addressing illegal drug flows and trade deficits. The justices concluded that the International Emergency Economic Powers Act (IEEPA) does not grant Trump the power to impose such tariffs, leading to potential refunds of over $175 billion for businesses that paid "reciprocal" tariffs during Trump's frequent changes in rates. This decision could have significant implications for international trade negotiations and global economic policies.
The ruling stems from challenges by U.S. companies and business groups who argued that the tariffs were implemented without proper legal authority. The court’s 6-3 decision remands the cases to lower courts, leaving it unclear how businesses will be compensated for tariffs they paid under the program. Many companies adjusted their operations and pricing strategies in response to Trump's shifting tariff policies, which often raised and lowered rates during tense negotiations with major trade partners.
The outcome of these cases could set a precedent for future U.S. trade policy, potentially limiting the president’s ability to unilater
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Originally published on Ars Technica on 2/20/2026