Supreme Court Rules Most of Donald Trump's Tariffs Are Illegal

Wired

by Zeyi Yang

February 20, 2026

AI-Generated Deep Dive Summary

The U.S. Supreme Court delivered a significant blow to former President Donald Trump’s tariff policies in a 6-3 ruling, declaring most of them illegal. The justices found that the International Emergency Economic Powers Act (IEEPA), which Trump used to justify many tariffs, does not grant the president the authority to impose taxes in the form of tariffs. This decision could result in over $175 billion in refunds for American companies that paid tariffs under IEEPA since February 2025. The ruling marks a rare instance of judicial pushback against Trump’s unconventional policies and raises questions about the future of his trade agenda. Trump’s tariff strategy, which targeted nearly every country globally during his second term, relied heavily on IEEPA. The law was originally designed for addressing foreign threats like terrorism or economic coercion, not for imposing sweeping tariffs. Legal scholars had long questioned its suitability for this purpose. Chief Justice John Roberts highlighted in the majority opinion that no previous president had used IEEPA to levy such extensive tariffs, emphasizing the lack of congressional authorization for this use of executive power. The decision does not apply to all of Trump’s tariffs—specific sectoral tariffs on steel, aluminum, and copper remain unaffected as they were imposed under different legal authorities. However, the ruling could spark concerns among small businesses and industries reliant on imported goods. Advocacy groups have already filed lawsuits seeking refunds, and major companies like Costco, Prada, BYD, and Goodyear are also pursuing legal action. The refund process for tariffs collected over the past year is expected to be complex and time-consuming, with economists estimating a potential financial burden of $175 billion. For readers interested in tech and science, this ruling carries significant implications. Many technology companies rely on imported components and materials, which could have faced higher costs due to Trump’s tariffs. The reversal of these policies may alleviate some financial pressure on businesses, potentially fostering innovation and competition in the tech sector. However, there are concerns that the administration might try to reimpose similar tariffs under alternative legal frameworks, which could disrupt global trade and supply chains. The Supreme Court’s decision also underscores the delicate balance between executive authority and congressional oversight. By striking down

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Originally published on Wired on 2/20/2026