February 20, 2026 — Washington, D.C. The U.S. Supreme Court ruled 6-3 in Learning Resources, Inc. v. Trump and the consolidated case Trump v. V.O.S. Selections, Inc. that the International Emergency Economic Powers Act (IEEPA) does not authorize the President to impose tariffs. The decision invalidated broad tariffs enacted by President Trump through executive orders citing national emergencies related to drug trafficking and trade deficits, imposing a significant limit on executive power over trade policy.
The 170-page opinion, penned in a splintered fashion and led by Chief Justice Roberts, affirmed lower courts in holding that IEEPA lacks authority for such measures. SCOTUSblog reported:
In a splintered decision… the Supreme Court agreed… IEEPA did not give Trump the power to impose the tariffs.
The ruling was described as a “stinging repudiation” and “stinging defeat” by the Wall Street Journal and Reuters, respectively, with major implications for the global economy.
Markets reacted with volatility amid tariff uncertainty, as noted in live coverage by The New York Times. The decision leaves uncertainty over more than $130 billion in collected tariffs, according to CNN, and over $160 billion deemed illegal by the Tax Foundation.
President Trump immediately responded by announcing a new 10% global tariff under Section 122 of the Trade Act of 1974, as covered by the New York Times and BBC. The ruling specifically invalidates emergency-law tariffs but spares others, per NBC News.
NPR outlined seven key takeaways, noting the decision covers “nearly everything the U.S. imports.” AP News discussed next steps, including stock market reactions and political ramifications.
Analysis from the Peterson Institute for International Economics called it a “welcome ruling,” while the Council on Foreign Relations examined future tariff prospects.
