Feb. 20, 2026 — Washington, D.C. The U.S. Supreme Court ruled 6-3 that President Donald Trump exceeded his authority under the International Emergency Economic Powers Act (IEEPA) by imposing broad “emergency” tariffs on global imports in Learning Resources, Inc. v. Trump (Nos. 24–1287 and 25–250), invalidating the measures including a 10% baseline levy and higher rates on imports from China and the EU.
Chief Justice John Roberts authored the majority opinion, joined by Justices Sotomayor, Kagan, Gorsuch, Barrett, and Jackson in parts. The court applied textual interpretation and the major questions doctrine, holding that IEEPA’s provision for “regulating importation” does not authorize tariffs, a core taxing power reserved to Congress under Article I, according to the full opinion and SCOTUSblog analysis. Justices Thomas, Alito, and Kavanaugh dissented, citing historical precedents for broader executive power.
The decision raises potential billions in refunds for importers but leaves open alternative statutory authorities such as Section 232 or Section 301.
President Trump immediately denounced the ruling as a “disgrace” and criticized conservative justices who joined the majority, announcing new 10-15% global tariffs via executive order using other legal bases, potentially effective as early as Feb. 24, per Washington Post live updates, New York Times coverage, and CNBC reporting.
Democrats, including Sens. Sherrod Brown and Elizabeth Warren, responded by pushing legislation to enable tariff refunds and curb the new measures, according to USA Today.
Market Reaction
U.S. stocks tumbled with the Dow dropping 700 points, Bitcoin fell below $65,000, gold surged past $5,100 per ounce, and futures declined amid trade uncertainty, as trade partners like the EU paused negotiations and Taiwan monitored developments.
The ruling marked the first major Supreme Court loss for Trump’s economic agenda, described as a stinging rebuke by Reuters and a blow to his “Liberation Day” policy by Forbes, with NPR and Politico noting its broad impact on nearly every importing country.
