Supreme Court Decision on Tariffs
- davidcogd
- Feb 20
- 2 min read
The Supreme Court has ruled by a 6-3 decision that Trump’s tariff deals are unconstitutional.
Here is the background:
Trump made the observation that tariff policy was inherently unfair to the U.S. economy and workers.
He elected to use the International Emergency Economic Powers Act (IEEPA) to impose broad, global tariffs, and negotiate new deals.
The IEEPA is poorly designed, but the President clearly has limited authority to impose tariffs - only in special situations such as select commodities or countries.
Trump’s approach usurped the power of Congress to set tariffs generally.
He should have submitted tariff deals to Congress for approval. Admittedly, that would likely be a dead end since Congress cannot even pass a permanent Federal Budget. So, Trump chose a risky direction and lost.
What’s next:
Many repercussions from this finding.
Collection Halted or Unlawful
Tariffs imposed under IEEPA are now void; costs collected under that authority are no longer legally justified.
Potential Refunds
Businesses that paid these tariffs may seek refunds. How refunds will be administered is still uncertain and could involve complex legal and administrative processes.
Alternative Tariff Authorities Still Possible
The ruling doesn’t ban all tariffs. The Trump administration and U.S. Trade Representative have indicated they may try to reimpose or maintain tariffs under other laws (e.g., Section 122 of the Trade Act or other statutory authorities). These alternatives have more limits (such as temporary durations, investigation requirements and lower rate caps) compared with IEEPA.
Broader Implications
This case limits executive authority to unilaterally impose broad economic measures without clear congressional authorization.
Some tariffs (like those under established statutes such as Section 232/301 for specific industries like steel or aluminum) aren’t directly affected by this ruling because they weren’t part of the IEEPA case.
Trump will have to start a process of Congressional approval to sustain his trade deals.
Congressional approval is hard to obtain in today’s highly partisan environment.
In the meantime, there will be a mess of litigation and demands over the previous tariffs that are now invalidated.
Summary
Should the President have independent authority to negotiate and set tariffs as part of Foreign Policy ?
It is a question worth consideration.
However, it would take a Constitutional Amendment to implement. Not a likely scenario.
David Hollaender February 20, 2026
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