Trump’s Tariffs Are Unlawful, Supreme Court Rules
Foreign Policy
by Keith JohnsonFebruary 20, 2026
AI-Generated Deep Dive Summary
The U.S. Supreme Court has ruled that President Donald Trump’s use of the 1977 International Emergency Economic Powers Act (IEEPA) to impose tariffs on countries worldwide was unlawful. The court, in a 6-3 decision, found that IEEPA does not grant the executive branch the authority to levy taxes or tariffs, which are powers reserved for Congress under the Constitution. This decision marks a significant blow to Trump’s signature trade policy and underscores constitutional limits on presidential authority.
The ruling highlights that IEEPA, which was designed for emergencies, never explicitly mentions “tariffs” and lacks the language necessary to delegate such broad financial powers to the executive branch. Chief Justice John Roberts emphasized in the majority opinion that the court has no role in matters of economics or foreign policy beyond interpreting the Constitution as written. The dissent, led by Justice Samuel Alito, argued that the ruling creates significant uncertainty for U.S. trade deals and could result in billions of dollars in refunds for tariffs already imposed.
The decision leaves unresolved questions about refunds for the tens of billions of dollars in tariffs collected under IEEPA. Trade lawyers estimate that refunds could range from $130 billion to $175 billion, potentially destabilizing the U.S. Treasury and affecting international trade agreements. Kavanaugh’s dissent warned of the “mess” that could ensue from processing such claims.
While this ruling does not eliminate all of Trump’s tariff authority, it limits his ability to impose tariffs on a global scale. Future tariffs would need to rely on more
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Originally published on Foreign Policy on 2/20/2026