US Supreme Court strikes down Trump's sweeping tariffs

Deutsche Welle

February 20, 2026

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The US Supreme Court has ruled that President Donald Trump did not have the authority to impose sweeping tariffs under the International Emergency Economic Powers Act (IEEPA). The court’s decision, made in a 6-3 vote, overturns Trump’s use of IEEPA for levying tariffs, which he argued was permissible during national emergencies. However, the justices concluded that the law does not grant the president the power to impose tariffs, emphasizing that such authority lies solely with Congress as outlined in the US Constitution. The ruling builds on a lower court decision from May 2019, which found Trump had overstepped his executive powers by unilaterally imposing punitive tariffs. Trump’s administration had argued that IEEPA allowed the president to regulate imports during emergencies, including through tariff imposition. However, the Supreme Court rejected this interpretation, stating that Congress would have explicitly granted such authority if it had intended for it to exist. Chief Justice John Roberts highlighted in the majority opinion that the framers of the Constitution did not intend for the executive branch to hold any part of the taxing power. The decision marks a significant blow to Trump’s trade policies and represents the first time the Supreme Court has directly limited his expansive use of executive authority. In dissent, Justice Brett Kavanaugh argued that the ruling would not significantly restrict future presidential tariff powers but acknowledged its symbolic importance in curbing Trump’s actions. The court’s decision is expected to have broader implications for international trade, as Trump had frequently used tariffs as a tool to pressure trading partners, often with little regard for economic reciprocity. The ruling also raises questions about the $133 billion in tariff revenue collected by the US Treasury under Trump’s policies. While some companies, such as Costco, have sought refunds for losses incurred due to these tariffs, experts suggest that American consumers and businesses have borne the brunt of the economic impact. The decision may prompt a reevaluation of how the US government approaches trade policy, potentially leading to more balanced and transparent mechanisms for addressing international

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Originally published on Deutsche Welle on 2/20/2026