21st February 2026
The Supreme Court ruled 6-3 that many of Trump's sweeping global tariffs were illegal because he lacked the statutory authority he claimed under the 1977 International Emergency Economic Powers Act (IEEPA). The Court emphasized that only Congress has the power to impose taxes and broad tariff regimes, not the president acting alone under emergency powers.
This decision overturns key elements of Trump’s tariff program — especially the broad levies he imposed on most U.S. trading partners.
What happens to the tariffs
Most of the sweeping tariffs Trump imposed under IEEPA are invalidated. That means they are illegal and could eventually be refunded to importers — though how and when refunds might happen is still unresolved and will be sorted out in lower courts.
Some tariffs remain in place. Tariffs that were enacted under different statutory authorities (e.g., national security tariffs on steel and aluminium under Section 232 of the Trade Expansion Act) were not overturned by this decision.
What the Trump administration says it will do next
Trump has vowed to continue using other legal authorities to impose tariffs:
He’s announced a new 10 % "global" tariff under Section 122 of the Trade Act of 1974, which allows temporary surcharges when there are serious balance-of-payments problems.
The administration may also pursue tariffs via Section 301 (unfair trade practices) and other more limited statutory bases — but these have procedural limits (e.g., investigations, time caps) that make them less broad than the invalidated IEEPA approach.
Constitutional and legal impact
The ruling is a significant limit on executive power, reinforcing that broad economic policies like tariffs require clear congressional authorization, not just presidential declaration of emergency.
Economic and political implications
There’s uncertainty about refunds, as companies begin to seek reimbursement for tariffs already collected.
Governments and trading partners (including the UK and EU) are assessing the impact on existing agreements and negotiating positions.
Trump and some political allies have strongly criticised the decision, calling it “lawless” and pledging to press ahead with new trade measures.
In summary: the Supreme Court has invalidated the core legal basis for Trump’s largest tariff program — a major legal and political setback — but some existing tariffs stay in force, and the administration intends to pursue alternative legal routes to keep trade barriers in place. The situation remains fluid, especially regarding refunds and future tariff authority.