Announcement: U.S. Supreme Court Invalidates Certain Tariffs Imposed Under Emergency Powers

On February 20, 2026, the United States Supreme Court issued a landmark decision invalidating certain tariffs imposed by President Donald J. Trump under the International Emergency Economic Powers Act of 1977 (“IEEPA”).

In a 6–3 ruling, the Court held that the IEEPA does not authorize the President to impose tariffs, concluding that the statute’s grant of authority to “regulate importation” does not extend to the power to levy taxes on imports. The Court emphasized that the authority to impose tariffs is constitutionally vested in Congress, and cannot be exercised by the executive branch absent clear legislative authorization.

Chief Justice John Roberts, writing for the majority, stated that the Court’s role was to determine whether the statutory language relied upon by the administration encompassed tariff authority, and concluded that it did not.

The challenged tariffs were part of a broader trade policy initiative that relied on emergency powers to impose sweeping duties on imported goods, including “reciprocal” tariffs applied across multiple countries. These measures had been justified by the administration on grounds including national economic concerns and trade imbalances.

The Supreme Court’s decision affirms lower court rulings that found the use of IEEPA in this context exceeded the scope of executive authority.

While the ruling invalidates tariffs imposed under this specific statutory framework, the Court did not address whether tariffs imposed under other laws remain valid. In addition, the decision leaves unresolved questions regarding the treatment of tariff revenues previously collected, which may be subject to further litigation.

This decision is expected to have significant implications for U.S. trade policy, executive authority, and ongoing disputes involving tariff-related measures.