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Barchart
Caleb Naysmith

Trump “May Be Required to Refund Billions of Dollars” After Supreme Court Overturns Tariffs, Hurts ‘Trillions of Dollars’ in Trade Deals

In a landmark decision on Feb. 20, 2026, the U.S. Supreme Court ruled that the president does not have authority under the International Emergency Economic Powers Act (IEEPA) to impose broad, sweeping tariffs, a policy centerpiece of the recent administration’s trade strategy. The 6–3 majority held that IEEPA does not empower the executive branch to impose tariffs without explicit congressional authorization, effectively invalidating much of the tariff regime imposed on imports from China, Mexico, Canada and other trading partners.

The decision, handed down in Learning Resources, Inc. v. Trump and V.O.S. Selections, Inc. v. Trump, represents a significant judicial check on presidential unilateral trade authority. Chief Justice John Roberts, writing for the majority, emphasized that tariff power historically resides with Congress under Article I of the Constitution and that vague language in emergency statutes cannot substitute for that authority.

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