The Supreme Court of the United States on Friday, February 20, 2026, invalidated most of the sweeping tariffs imposed by President Donald Trump during his second term, ruling that the administration exceeded its authority under federal emergency law.
In a 6–3 decision, the Court held that the International Emergency Economic Powers Act (IEEPA) does not authorize the president to impose broad, across-the-board tariffs without clear congressional approval.
The justices said tariff-setting power rests primarily with Congress and cannot be expanded through an expansive reading of emergency statutes.
The ruling strikes down the majority of the “reciprocal” tariffs introduced in 2025 under emergency authority.
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However, tariffs imposed under other laws including Section 232 of the Trade Expansion Act and Section 301 of the Trade Act, remain in force because they rely on separate statutory powers not addressed in the case.
The decision dismantles a central pillar of Trump’s second-term trade policy and narrows the scope of executive authority in economic matters.
It also raises potential fiscal implications, including legal challenges over tariff revenues already collected.
By reinforcing congressional primacy over trade duties, the Court’s judgment reshapes the legal framework for future U.S. tariff policy and sets clearer limits on the use of emergency powers in economic governance.