Supreme Court Limits Trump’s Tariff Authority, New Levies Follow

The Supreme Court has issued a significant ruling against former President Donald Trump’s use of tariffs, finding he overstepped his authority in imposing them on a broad range of imports. The decision, however, has been met with immediate action from Trump, who has already announced new tariffs in response. This ruling and subsequent actions create continued uncertainty in global trade.

Supreme Court Ruling Details

On February 20, 2026, the Supreme Court ruled that President Trump did not have the authority to impose sweeping tariffs without clear congressional authorization . The Court found that his use of the International Emergency Economic Powers Act (IEEPA) of 1977, intended for national emergencies, was not justified in this case . The decision was a 6-3 ruling, with Chief Justice John Roberts authoring the majority opinion.

Justices’ Votes

The following justices voted against the tariffs:

• Chief Justice John Roberts (conservative)
• Neil Gorsuch (conservative)
• Amy Coney Barrett (conservative)
• Sonia Sotomayor (liberal)
• Elena Kagan (liberal)
• Ketanji Brown Jackson (liberal)

Justices Brett Kavanaugh, Clarence Thomas, and Samuel Alito dissented .

Economic Impact of Tariffs

The federal government has been collecting approximately $30 billion in tariffs each month, four times the amount collected before Trump’s return to the White House . While Trump raised tariff rates to their highest level in nearly a century, these taxes still represent just over 5% of overall government revenue as of January 2026.

A working paper from Harvard University and the University of Chicago estimates that nearly all the cost of Trump’s tariffs is being paid by U.S. Importers, not foreign suppliers . Importers have attempted to mitigate these costs by shifting production to countries with lower tariff rates; for example, the percentage of U.S. Imports from China fell from 12% in 2024 to approximately 8% by September of last year.

Trump’s Response and Future Outlook

Despite the Supreme Court’s ruling, Trump has responded by imposing new tariffs , indicating that trade policy chaos is likely to continue. The Court’s decision does not necessarily preclude Trump from imposing tariffs under other statutory authorities .

At least 1,800 companies are already seeking refunds for tariffs paid through the courts .