Dealing a massive blow to Donald Trump’s economic policy, the U.S. Supreme Court ruled this morning that Trump’s global tariffs are illegal.
In a 6-3 decision, written by Chief Justice John Roberts, the high court found that the International Emergency Economic Powers Act (IEEPA) — which Trump has used to justify his tariffs — does not give Trump the power to unilaterally impose tariffs.
From ABC News:
“We claim no special competence in matters of economics or foreign affairs. We claim only, as we must, the limited role assigned to us by Article III of the Constitution,” Roberts wrote. “Fulfilling that role, we hold that IEEPA does not authorize the President to impose tariffs.”
The Trump administration attempted to justify the tariffs by arguing that IEEPA says the president has the power to regulate “importation,” but Roberts said their read of the law was a stretch.
The Supreme Court’s ruling strikes down 70% of Trump’s global tariffs after they have collected more than $142 billion through December, according to the Yale Budget Lab.
Companies ranging from Costco to small businesses have sued the Trump administration to effectively “get in line” for refunds if the court deemed them unconstitutional.
In a 6-3 ruling, SCOTUS says President Trump cannot invoke the International Emergency Economic Powers Act (IEEPA) to set tariffs on imports.https://t.co/0LjPbejqBZ
— Frank Luntz (@FrankLuntz) February 20, 2026
Not addressed in the ruling was specifically HOW the issue of refunds or how that process would work. One thing is certain, though – the American consumers who paid higher prices will NOT be getting a refund. Nor does it mean prices on imported goods will be coming down in the near future.
The Tax Foundation estimated Trump’s trade war cost American households roughly $1,100 each in 2025.
Some of Trump’s tariffs will remain in place, such as those imposed on steel and aluminum using Section 232 of the Trade Expansion Act of 1962.
According to multiple sources, upon learning the news at a breakfast, Trump flew into a rage. I’m guessing the walls of the White House could be covered in ketchup right now.
CNN: Apparently the breakfast had been going well. Then Trump became enraged. He started ranting about the decision, not only calling it a disgrace, but started attacking the courts at one point saying: these f’ing courts pic.twitter.com/p7aR2LiXVV
— Acyn (@Acyn) February 20, 2026
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