Feb. 20, 2026 — Washington, D.C. — The U.S. Supreme Court issued a 6-3 ruling in Learning Resources, Inc. et al. v. Trump (Nos. 24-1287 and 25-250), striking down President Donald Trump’s sweeping global tariffs imposed under the International Emergency Economic Powers Act (IEEPA) of 1977. The Court held that IEEPA does not clearly authorize tariffs, deeming them a form of taxation reserved to Congress under Article I, Section 8.
The tariffs imposed a baseline 10% duty on nearly all imports, with higher rates on nations including China, Canada, and Mexico, justified by trade deficits and fentanyl flows. They generated $175-200 billion in revenue before the decision halted collection effective around February 23, according to SCOTUSblog and Reuters.
Chief Justice John Roberts authored the majority opinion, joined variably by Justices Sotomayor, Kagan, Jackson, Gorsuch, and Barrett. The ruling relied on ordinary statutory interpretation and the major questions doctrine, citing a lack of historical precedent for using IEEPA to impose tariffs and clarifying that “regulate” does not encompass taxing.
Justice Kavanaugh wrote the principal dissent, joined by Justices Thomas and Alito, arguing IEEPA’s text and history permit tariffs as a regulatory tool in foreign affairs. Justice Thomas filed a separate dissent joined in part by Alito and Gorsuch.
President Trump responded swiftly by announcing new 10-15% “national security” tariffs under other laws, vowing no retreat on trade policy, as covered by BBC and Yahoo Finance. The decision leaves refunds for collected tariffs unclear, prompting lawsuits from affected businesses.
FedEx is among companies suing for billions in refunds following the ruling, per a Reuters post. Lawmakers like Rep. Steven Horsford proposed the RELIEF Act for consumer refunds, while California AG Rob Bonta criticized Trump for raising prices again, according to X posts and another.
The ruling stemmed from challenges by businesses and states against the tariffs, marking a significant limit on executive trade powers amid ongoing IEEPA litigation, as analyzed by SCOTUSblog and the Peterson Institute for International Economics. Coverage from Politico, NYT, NBC News, CNN, and CNBC highlighted political and economic fallout.
