Supreme Court strikes down swath of Trump's tariffs
Business Insider
February 20, 2026
AI-Generated Deep Dive Summary
The Supreme Court has ruled that President Donald Trump exceeded his authority by imposing tariffs using the International Emergency Economic Powers Act (IEEPA). In a 6-3 decision, the Court found that IEEPA does not grant the president the sweeping power to impose taxes on imports, which traditionally falls under Congress's jurisdiction. The ruling invalidates a significant portion of Trump’s tariff policies, including his controversial "Liberation Day" tariffs announced in April 2019, which imposed at least 10% tariffs on nearly every country.
The majority opinion, written by Chief Justice John Roberts, emphasized that the Constitution limits presidential authority to impose taxes and tariffs. Roberts noted that Congress explicitly delegates such powers in clear terms, with strict limitations. The Court’s decision was supported by four concurring opinions from Justices Neil Gorsuch, Amy Coney Barrett, Elena Kagan, and Ketanji Brown Jackson, who argued that the "major questions doctrine" requires clear Congressional authorization for decisions of significant economic impact.
While the ruling does not affect tariffs imposed under other laws, it limits Trump’s reliance on IEEPA, which he viewed as more flexible. Other tariff-imposing laws have built-in restrictions, such as expiration dates and caps on taxed amounts, unlike IEEPA. The decision also highlights that Congress retains ultimate control over trade policies, a principle central to the Constitution.
The case was brought by two groups of businesses challenging Trump’s use of IEEPA for tariffs. During oral arguments, most justices expressed skepticism about the administration’s interpretation of IEEPA’s scope. Justice Neil Gorsuch likened the power to impose taxes to a "spark of the American Revolution," underscoring the need for careful Congressional
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Originally published on Business Insider on 2/20/2026