Supreme Court struck down Trump's tariffs in 6-3 decision
Court ruled Trump misused emergency powers law to justify tariffs
Tariffs affected major trading partners including Mexico, Canada, China
Businesses celebrated decision but refunds for collected tariffs remain uncertain
Constitution gives Congress, not president, power to impose tariffs
📖 Full Retelling
The Supreme Court dealt President Donald Trump a significant defeat on Friday, February 21, 2026, by striking down sweeping tariffs he imposed on nearly every country in an attempt to use emergency powers to justify the economic measures. In its 6-3 opinion, the justices ruled that Trump's reliance on the 1977 International Emergency Economic Powers Act (IEEPA) was invalid, as the law contains no provision for tariffs and was intended for asset seizures and transaction blocks during national emergencies. Chief Justice John Roberts wrote for the majority, noting that 'the fact that no President has ever found such power in IEEPA is strong evidence that it does not exist,' while emphasizing that the Constitution clearly grants Congress, not the president, the authority to impose taxes including tariffs.
The tariffs affected America's three biggest trading partners—Mexico, Canada, and China—with Trump declaring national emergencies over undocumented immigration and drug trafficking to justify the initial measures. In April, on what he called "Liberation Day," Trump imposed "reciprocal" tariffs of up to 50% on goods from dozens of countries and a baseline 10% tariff on nearly all others. Additional tariffs were placed on Brazilian imports citing criminal prosecution of former President Jair Bolsonaro, and on India for its purchases of Russian oil. Many of these tariffs had seen a roller coaster of implementation since being introduced, with some being removed, increased, and reinstated multiple times.
Despite the ruling, many tariffs remain in place as they were justified through other means, including steep import taxes on steel, aluminum, cars, copper, lumber, kitchen cabinets, bathroom vanities, and upholstered furniture. Small businesses that had fought the tariffs celebrated the decision as a "tremendous victory," with group leader Dan Anthony noting how companies had taken loans, frozen hiring, and watched their savings drain to pay tariff bills not in their original budgets. However, the court did not address whether the more than $133 billion collected through these tariffs could be refunded, a process that Justice Brett Kavanaugh noted in his dissent would likely be 'a mess' as acknowledged during oral arguments.
Difference between the monetary value of exports and imports
Balance of trade is the difference between the monetary value of a nation's exports and imports of goods over a certain time period. Sometimes, trade in services is also included in the balance of trade but the official IMF definition only considers goods. The balance of trade measures a flow variab...
In most legal jurisdictions, a supreme court, also known as a court of last resort, apex court, high (or final) court of appeal, and court of final appeal, is the highest court within the hierarchy of courts. Broadly speaking, the decisions of a supreme court are binding on all other courts in a nat...
Declaration by a government allowing assumption of extraordinary power
A state of emergency is a situation in which a government is empowered to put through policies that it would normally not be permitted to do, for the safety and protection of its citizens. A government can declare such a state before, during, or after a natural disaster, civil unrest, armed conflict...
The International Emergency Economic Powers Act (IEEPA), Title II of Pub. L. 95–223, 91 Stat. 1626, enacted December 28, 1977, is a United States federal law authorizing the president to regulate international commerce after declaring a national emergency in response to any unusual and extraordinary...
By — Matt Sedensky, Associated Press Matt Sedensky, Associated Press Leave your feedback Share Copy URL https://www.pbs.org/newshour/politics/what-to-know-about-the-supreme-court-ruling-on-trumps-tariffs Email Facebook Twitter LinkedIn Pinterest Tumblr Share on Facebook Share on Twitter What to know about the Supreme Court ruling on Trump's tariffs Politics Feb 20, 2026 2:12 PM EST NEW YORK — The Supreme Court dealt President Donald Trump a bruising loss on a cornerstone of his economic policy, striking down sweeping tariffs he imposed on nearly every country. In its 6-3 opinion on Friday, the court ruled Trump's attempt to use an emergency powers law to enact the levies was not valid. Two out of three of the justices appointed by Trump joined the majority in striking down the first major piece of Trump's second-term agenda to come before them. Educate your inbox Subscribe to Here’s the Deal, our politics newsletter for analysis you won’t find anywhere else. Enter your email address Subscribe Form error message goes here. Thank you. Please check your inbox to confirm. Here's what to know: What the court ruled Trump relied on the 1977 International Emergency Economic Powers Act, or IEEPA, as justification for a historic barrage of tariffs, even though that law contains no mention of tariffs. IEEPA, which allows the president to seize assets and block transactions during a national emergency, was first used during the Iran hostage crisis. It has since been invoked for a range of global unrest, from the 9/11 attacks to the Syrian civil war. The president said the U.S. trade deficit were so serious, it too qualified as an emergency, a contention the high court dismissed. "The fact that no President has ever found such power in IEEPA is strong evidence that it does not exist," Chief Justice John Roberts wrote for the majority. READ MORE: What happens now that the Supreme Court struck down Trump's tariffs? In its opinion, the justices noted the Constitution "very clearly"...
