Supreme Court Invalidates President Trump's Tariff Measures
The U.S. Supreme Court ruled that President Trump's use of the International Emergency Economic Powers Act to impose tariffs was unconstitutional, leading to economic repercussions and legal challenges.
On February 20, 2026, the U.S. Supreme Court ruled 6-3 that President Donald Trump's use of the International Emergency Economic Powers Act (IEEPA) to impose tariffs was unconstitutional. Chief Justice John Roberts, writing for the majority, stated that IEEPA does not grant the president authority to unilaterally impose tariffs.
The tariffs, introduced in April 2025 and referred to as "Liberation Day" tariffs, aimed to address trade deficits by imposing duties on imports from various countries. However, these measures led to increased inflation and economic uncertainty. A CNN poll indicated that 65% of Americans believed the tariffs negatively impacted the economy, with President Trump's approval rating dropping to 35%.
Following the Supreme Court's decision, the administration announced new tariffs on patented pharmaceuticals, imposing 100% duties to pressure drugmakers into lowering prices and relocating manufacturing to the U.S. Companies committing to domestic production could receive a reduced tariff rate of 20%.
The ruling has also prompted legal debates over the refund of tariffs collected under IEEPA. The Tax Foundation estimated that these tariffs had raised over $160 billion for the federal government. The Court's decision does not affect tariffs imposed under other statutes, such as Section 232 of the Trade Expansion Act, which remain in place.
In response to the ruling, President Trump criticized the Supreme Court, alleging foreign influence over its decision. He expressed particular dissatisfaction with Justices Neil Gorsuch and Amy Coney Barrett, both of whom he appointed. The administration has indicated plans to explore alternative legal avenues to implement its trade policies.