Feb. 20, 2026 — Washington — The U.S. Supreme Court ruled 6-3 in Learning Resources, Inc. et al. v. Trump (Nos. 24-1287 and 25-250) that the International Emergency Economic Powers Act (IEEPA) does not authorize the President to impose tariffs, as the statute limits authority to regulating, not taxing, imports during emergencies. Chief Justice John Roberts wrote for the majority, invoking the major questions doctrine and Congress’s exclusive taxing power under Article I, striking down Trump’s 25% “trafficking tariffs” on Canada and Mexico, 10% on China for fentanyl-related issues, and 10%+ “reciprocal tariffs” on global trade deficits.
The Court held that IEEPA’s text—authorizing the President to “regulate . . . importation”—cannot bear the weight of unbounded tariffs on any imports at any rate.
“Based on two words separated by 16 others in … IEEPA—‘regulate’ and ‘importation’—the President asserts the independent power to impose tariffs on imports from any country, of any product, at any rate, for any amount of time. Those words … cannot bear such weight.”
Roberts wrote, per SCOTUSblog analysis. No prior president used IEEPA for tariffs in its 49-year history. Justices Gorsuch and Barrett concurred, while Kagan (joined by Sotomayor and Jackson) agreed on textual grounds without needing the major questions doctrine. Justices Kavanaugh, Thomas and Alito dissented, arguing historical precedent allows it.
President Trump responded defiantly on Truth Social, calling the ruling “ridiculous, dumb, and very internationally divisive.”
“Any Country that wants to ‘play games’ with the ridiculous supreme court decision, especially those that have ‘Ripped Off’ the U.S.A. for years, and even decades, will be met with a much higher Tariff, and worse, than that which they just recently agreed to… BUYER BEWARE!!!”
He announced a new 10% global tariff under Section 122 of the 1974 Trade Act, raised to 15% by Feb. 21, exempting food and minerals, per NYT live updates and NBC News. Trump attacked the majority, praising dissenting justices as the “Great Three.”
The ruling creates uncertainty over $100-200 billion in collected tariffs and potential refunds, stalling trade deals. The EU halted ratification of a U.S. trade pact, citing uncertainty, while China urged lifting measures and began assessments.
Markets plunged amid volatility. The Dow fell over 700 points (1.5%), the S&P 500 dropped 0.83% to 6,851.89, and Nasdaq slid 1.1%, due to tariff reversal and new threats, per Yahoo Finance and AP.
On X, data journalist @gelliottmorris noted:
SCOTUS handed Trump a potential political win on tariffs. He could have ended an unpopular policy that is driving up inflation for the average American. Instead, he decided to double down, attacking the Court and announcing new import taxes. FAFO link
— G Elliott Morris (@gelliottmorris) February 22, 2026
Analyses from PIIE and CFR suggest other tools like sanctions remain, but new battlefronts emerge.
