Supreme Court rules against Trump’s emergency tariffs – but leaves key questions unanswered
President Donald Trump’s economic agenda took a major hit when the Supreme Court struck down many of his most sweeping tariffs. While Trump has options to restore some of the tariffs, he’s losing his most powerful tool to impose them almost at will as a bargaining chip with other countries.
In a 6-3 decision on Feb. 20, 2026, the court ruled that Trump’s use of the International Emergency Economic Powers Act of 1977 to unilaterally impose tariffs on other countries was unconstitutional. Since January 2025, Trump has used the act to impose tariffs on nearly every other country.
As a trade economist, I wasn’t particularly surprised by the ruling. In the oral arguments, several justices were openly skeptical about the president’s ability to claim virtually unlimited powers to set tariffs without specific congressional language to authorize them. While the ruling answers some questions about the legality of Trump’s tariffs, it leaves many others unanswered.
What are the tariffs the court ruled against?
The tariffs that the court ruled are illegal include the “reciprocal” tariffs Trump imposed to match the value of trade barriers set by other countries. They ranged from 34% on China to a baseline of 10% for the rest of the world.
They also include a 25% tariff on some goods from Canada, China and Mexico over those countries’ supposed failure to curb the flow of fentanyl into the U.S.
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