Trump illegally overstepped executive power with global tariffs, supreme court rules

 

Trump illegally overstepped executive power with global tariffs, supreme court rules

On February 20, 2026, the U.S. Supreme Court ruled 6–3 that President Donald Trump exceeded his constitutional authority by unilaterally imposing sweeping global tariffs.

 

Key Details of the Ruling

The Law in Question: The Court found that the International Emergency Economic Powers Act (IEEPA) of 1977 does not authorize a president to impose tariffs. While the act allows for regulating international transactions during national emergencies, it does not explicitly grant the power to tax.

Constitutional Basis: Writing for the majority, Chief Justice John Roberts stated that the U.S. Constitution "very clearly" vests the power to levy taxes and tariffs in Congress, not the executive branch.

Major Questions Doctrine: The conservative majority applied the "major questions doctrine," which requires clear congressional authorization for executive actions of vast economic and political significance.

The Vote: The 6–3 decision saw Chief Justice Roberts joined by Justices Barrett and Gorsuch and the three liberal justices. Justices Thomas, Alito, and Kavanaugh dissented.

 

Impact and Fallout

Tariffs Affected: The ruling specifically targets the "Liberation Day" tariffs from April 2025 and earlier "trafficking tariffs" aimed at Mexico, Canada, and China.

Refund Potential: Importers may now be eligible for billions of dollars in refunds for duties already paid, though Justice Kavanaugh’s dissent warned that the refund process could be a logistical "mess".

Economic Reaction: Following the announcement, Wall Street indexes jumped, with the Dow Jones Industrial Average rising over 200 points.

Remaining Authorities: The ruling does not stop the president from imposing tariffs under other laws, such as Section 232 of the Trade Expansion Act (national security grounds), though these require formal investigations by the Commerce Department.