Feb. 20, 2026 — Washington, D.C. The U.S. Supreme Court ruled 6-3 that President Donald Trump’s broad tariffs imposed under the International Emergency Economic Powers Act (IEEPA) constitute an unconstitutional overreach of presidential authority, invalidating levies on global imports while leaving other tariff authorities intact.
Chief Justice John Roberts authored the principal majority opinion in Learning Resources, Inc. v. Trump, joined in parts by Justices Sotomayor, Kagan, Gorsuch, Barrett and Jackson. The Court held that IEEPA’s language to “regulate… importation” does not authorize tariffs, as the statute lacks references to “tariff,” “duty” or “tax.”
“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.”
— Chief Justice John Roberts, SCOTUSblog analysis
The decision invoked the major questions doctrine, requiring clear congressional authorization for actions of vast economic significance, and noted no historical precedent for IEEPA tariff use. Justices Thomas, Kavanaugh and Alito dissented in part, with Kavanaugh arguing the ruling creates refund uncertainty potentially worth billions.
The ruling spares tariffs under statutes like Section 232 of the Trade Expansion Act for national security (steel and aluminum) and Section 122 of the Trade Act of 1974 for balance-of-payments deficits (up to 15% for 150 days).
President Trump immediately responded, calling the decision a “disgrace” and criticizing the justices, including some appointees, as “fools and lap dogs.”
“The Supreme Court’s ruling on tariffs is deeply disappointing, and I’m ashamed of certain members of the court, absolutely ashamed for not having the courage to do what’s right for our country.”
— President Trump, CNN coverage
Trump signed an executive order imposing a 10% global tariff under Section 122, effective February 24, and raised it to 15% the next day via social media, vowing “even stronger” measures ahead.
U.S. Customs and Border Protection announced it would stop collecting IEEPA tariffs, raising questions over $100-200 billion in potential refunds to importers. FedEx filed suit seeking refunds, with analysts predicting years of litigation.
Markets showed volatility: U.S. stock futures fell, gold rose, bitcoin dropped, per Yahoo Finance updates. The EU expressed caution on trade deals, while businesses welcomed relief but braced for uncertainty, according to New York Times live coverage.
The decision marks Trump’s first major Supreme Court loss on full review, checking executive trade powers amid ongoing challenges from businesses and states.
