20.02.2026 19:00
The U.S. Supreme Court overturned the tariffs imposed by former President Donald Trump under the International Emergency Economic Powers Act of 1977. The court deemed the president's unilateral imposition of import duties using this law as an overreach of authority. Trump had made these tariffs one of the key tools of economic and foreign policy.
The U.S. Supreme Court has overturned the comprehensive tariffs imposed by former President Donald Trump under the International Emergency Economic Powers Act (IEEPA) of 1977. In a 6 to 3 decision, the court deemed the president's unilateral imposition of import taxes using the act as an overreach of authority.
Chief Justice John Roberts, who authored the decision, emphasized that the president must demonstrate clear authorization from Congress to exercise extraordinary powers, stating that this condition was not met.
CONTROVERSIAL TARIFFS
Since the beginning of his second term, Trump had made tariffs one of the key tools of economic and foreign policy. Taxes targeting numerous trading partners had led to uncertainty in global markets and deepened trade wars.
The case was brought to the Supreme Court following appeals from companies affected by the tariffs and 12 states, mostly under Democratic administration. The lower court rulings against Trump were also upheld by the Supreme Court.
WHO HOLDS THE AUTHORITY? THE PRESIDENT OR CONGRESS?
The U.S. Constitution grants Congress the authority to impose taxes and tariffs. Trump had implemented extensive tariffs using the IEEPA without Congressional approval.
The IEEPA grants the president the authority to regulate trade during national emergencies; however, the text of the law does not contain a direct provision regarding tariffs. Trump was the first U.S. president to use this law for tariffs. Previously, the law was generally invoked for sanctions and asset freezes.
THE BILLIONS OF DOLLARS REVENUE DEBATE
The Trump administration argued that the tariffs would generate trillions of dollars for the U.S. over the next decade. Economic analyses indicate that taxes collected under the IEEPA have exceeded $175 billion. It remains uncertain whether this amount will be refunded following the court's decision.
The U.S. Congressional Budget Office projected that if the current tariffs continued, they would generate approximately $300 billion annually. Treasury data also revealed that net customs revenue reached a record level of $195 billion in the fiscal year 2025.
TRUMP'S "PLAN B" MESSAGE
After the Supreme Court took up the case, Trump announced that they would develop alternative plans in the event of a possible cancellation decision. Administration officials indicated that other legal bases could be used against imports threatening national security or unfair trade practices.
TARIFF LEVERAGE IN FOREIGN POLICY
Trump used tariffs not only as an economic tool but also as a political pressure tactic. Taxes on China, Canada, and Mexico were implemented under the declared "national emergency" regarding fentanyl trafficking and drug trade.
This approach had led to tensions in relations with many countries, including traditional U.S. allies.
The case came before the Supreme Court through the consolidation of various appeals. The Washington-based federal appeals court had ruled in favor of small businesses importing goods and 12 states. In a separate case, a ruling was made in favor of the family business Learning Resources.
With the Supreme Court's decision, the comprehensive tariffs implemented during the Trump administration have lost their legal validity.