The US Supreme Court on Friday struck down many of President Donald Trump’s global tariffs, ruling that the administration lacked legal authority to impose them without Congress.
In a 6–3 decision, the justices said the Constitution assigns taxing powers to lawmakers, not the president, dealing a major blow to Trump’s tariffs and his broader trade agenda. The ruling places new limits on the executive branch and clarifies the role of Congress in setting trade policy.
The court found that the International Emergency Economic Powers Act, a 1977 law meant to address national emergencies, did not justify the tariffs imposed during peacetime. The majority said the administration’s interpretation would have greatly expanded presidential control over tariff policy without clear approval from Congress.
In its opinion, the court said the framers of the Constitution intentionally gave Congress exclusive authority over taxes and tariffs. The justices emphasized that when Congress has allowed presidents to act on tariffs, it has done so with specific language and strict limits.
The court also relied on the major questions doctrine, which requires clear authorization from Congress for policies with large economic effects.
Supreme Court sets limits on Trump’s tariffs and presidential power
The White House had conceded that presidents do not have inherent power to impose tariffs in peacetime. The court said that admission weakened the administration’s reliance on the emergency law.
The ruling was supported by the court’s three liberal justices, Chief Justice John Roberts, and Justices Neil Gorsuch and Amy Coney Barrett.
BREAKING: The Supreme Court of the United States has officially ruled that President Trump's tariffs are illegal, in a 6-3 ruling.
The US now faces $150+ billion in potential tariff refunds. pic.twitter.com/M7roTQH8WP
— The Kobeissi Letter (@KobeissiLetter) February 20, 2026
Justice Brett Kavanaugh dissented, saying the decision might not significantly reduce presidential tariff authority in the future. He argued the administration relied on the wrong statute and warned of immediate consequences.
Kavanaugh said the court failed to address whether the government must refund billions of dollars collected from importers. He cautioned that such refunds could severely affect the Treasury and create a difficult administrative process.
He also said the decision could complicate trade agreements that relied on the tariffs, including deals with China, the United Kingdom and Japan.
Market and political reaction to the Supreme Court ruling
Financial markets reacted modestly. Stocks edged higher, with the S&P 500 up about 0.5 percent in morning trading. Shares of furniture retailers rose sharply, while bond yields increased and precious metals briefly fell before recovering.
Trump criticized the ruling during a White House event with governors, calling it deeply wrong. Tariffs have been central to his effort to reshape U.S. trade policy and collect revenue from imports, though economists have warned they raise costs for consumers.
Senate Minority Leader Chuck Schumer praised the decision, saying it protected consumers from what he called unlawful tariff taxes. International reaction was cautious.
British trade officials said the ruling clarified executive limits but left uncertainty for businesses. Mexico’s president said her government was reviewing the decision and stressed the importance of maintaining strong trade ties.
Despite the ruling, the tariffs may not disappear. The administration has said it could rely on other trade laws to pursue similar measures, leaving future policy uncertain.
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