The supreme court’s tariffs ruling puts Trump on notice with a bloody nose

 

The supreme court’s tariffs ruling puts Trump on notice with a bloody nose

On February 20, 2026, the U.S. Supreme Court dealt a major blow to President Trump’s economic agenda by ruling 6–3 that he lacked the authority to unilaterally impose sweeping global tariffs under the International Emergency Economic Powers Act (IEEPA).

The ruling in Learning Resources, Inc. v. Trump and Trump v. V.O.S. Selections, Inc. effectively invalidated the "Liberation Day" and "Reciprocal Tariffs" that had been a centerpiece of his second-term trade policy.

 

Key Aspects of the Ruling

Congressional Power Reaffirmed: Writing for the majority, Chief Justice John Roberts emphasized that the power to lay and collect taxes—which includes tariffs—is reserved exclusively for Congress under Article I of the Constitution. The Court found that IEEPA’s language about "regulating importation" does not grant the president the "extraordinary power" to raise revenue through taxes.

The 6-3 Majority: Roberts was joined by the three liberal justices and two Trump appointees, Justices Neil Gorsuch and Amy Coney Barrett. Their defection sparked immediate fury from the President, who labeled the decision a "disgrace" and accused the justices of being "unpatriotic" and "swayed by foreign interests".

Billion-Dollar Refund Crisis: While the Court did not immediately order refunds, the ruling leaves the administration facing potential claims for $160 billion to $175 billion in duties already collected from U.S. importers.

 

Trump’s Immediate Pivot

Despite the "bloody nose" from the Court, the President moved within hours to bypass the ruling using different legal authorities:

Section 122 Blanket Tariff: Trump signed an executive order imposing a 10% global tariff under Section 122 of the Trade Act of 1974. This law allows for tariffs to address balance-of-payment problems but is limited to a 150-day duration unless extended by Congress.

New Investigations: The administration launched new "unfair trade" investigations under Section 301, seeking more permanent legal grounds to reimpose higher levies on specific countries.

Intact Duties: The ruling does not affect tariffs imposed under Section 232 (national security), such as those on steel and aluminum, which remain in place.

Critics and legal experts view this as a rare instance of the conservative-leaning Court successfully checking the expansion of executive power, forcing the administration to seek specific congressional approval for long-term, broad-scale tariff policies.