Supreme Court Blocks Trump-Era Tariffs Imposed Under IEEPA

The U.S. Supreme Court issued a decision on February 20, 2026, limiting presidential authority to impose broad tariffs under the International Emergency Economic Powers Act (IEEPA). The ruling affects existing tariffs and initiates a process for refund claims.

The Court determined by a 6-3 majority that the IEEPA does not permit the president to enforce sweeping tariffs. This decision directly impacts tariffs that were previously established under this law.

Chief Justice John Roberts delivered the majority opinion, joined by Justices Sotomayor, Kagan, Gorsuch, Barrett, and Jackson. Justices Thomas, Kavanaugh, and Alito dissented in the case known as Learning Resources, Inc. v. Trump.

The Supreme Court's decision vacated many tariffs implemented under IEEPA and remanded the case to lower courts to address the process for refund claims. This procedural step opens the possibility for affected parties to pursue reimbursement for tariffs collected under the vacated measures.

What the numbers show

• The Supreme Court ruling was issued on February 20, 2026
• Businesses and trade groups are seeking refunds exceeding $133 billion
• The proposed new global tariff is set at 10%, with a potential increase to 15%

Following the Supreme Court's decision, businesses and trade associations are seeking refunds for more than $133 billion in tariffs that were collected under IEEPA. These claims are now subject to review in lower courts as directed by the ruling.

President Trump announced plans to introduce a new global tariff, starting at 10% and potentially rising to 15%, using other legal authorities such as the Trade Act of 1974. This announcement came after the Supreme Court's decision limited the use of IEEPA for such tariffs.

The ruling has introduced new uncertainty in U.S.-China trade relations. Both countries are considering the implications of the decision as President Trump prepares for a scheduled visit to China from March 31 to April 2, 2026.

The Supreme Court's action marks a procedural change in how tariffs can be imposed under emergency economic powers. The case now returns to lower courts, which will oversee the process for handling refund claims related to the vacated tariffs.

* This article is based on publicly available information at the time of writing.