Supreme Court Blocks Trump Tariffs in Landmark Trade Ruling

Washington, D.C. – February 20, 2026 – In a significant victory for businesses and a rare rebuke of presidential authority, the Supreme Court today struck down a series of tariffs imposed by former President Donald Trump. The ruling, delivered in the case of Learning Resources, Inc. V. Trump, asserts that only Congress has the constitutional power to impose taxes, including tariffs, on the American people.

A Decisive Victory for Constitutional Principles

Neal Katyal, partner at Milbank LLP and the lead attorney arguing the case, described the decision as a “complete victory.” “We got everything we asked for, and I thought the Supreme Court stood up for our Constitution,” Katyal stated shortly after the ruling. He further emphasized that the actions were “gravely illegal” and expressed gratitude that six justices agreed with his team’s assessment. Source: USA Today

Challenging Presidential Power

The case marked a departure from the Supreme Court’s historical deference to the executive branch in trade matters. Katyal, a 55-year-old Georgetown University law professor and former acting Solicitor General, noted the court’s usual circumspection when considering challenges to presidential actions. “Whenever you’re challenging major presidential action, the court is really circumspect about saying no to a president,” he explained. Source: USA Today

The ruling was particularly notable as it included support from two judges appointed by President Trump, signaling a bipartisan consensus on the limits of presidential power in trade policy. Source: USA Today

Katyal’s Perspective and the Legal Foundation

Katyal, who argued his 54th case before the Supreme Court, expressed confidence in the legal basis of the challenge. He stated he “always knew in his heart of hearts, this was blatantly illegal” and that his team possessed “the best originalist understanding from the point of view of our founders.” Source: USA Today He also characterized Trump’s actions as “really fundamentally un-American.”

Impact and Future Implications

The Supreme Court’s decision is expected to provide crucial relief to businesses and consumers affected by the tariffs. Katyal highlighted that the case was not about any single president but about upholding the separation of powers and the rule of law. Source: LinkedIn

The Liberty Justice Center, led by Sara Albrecht, played a key role in the fight, taking a stand when others hesitated. The case was brought forth by five small business owners who challenged the constitutionality of the tariffs. Source: LinkedIn

Milbank LLP’s Role

The case was argued by Neal Katyal, Colleen Roh Sinzdak, and Samantha Ilagan of Milbank LLP. Source: Milbank LLP