U.S. Supreme Court Strikes Down Trump's Tariffs

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Written by Will Ploch, Assistant Editor-in-Chief for IIR News Intelligence (Sugar Land, Texas)

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Summary

The U.S. Supreme Court has gutted a central pillar of President Donald Trump's economic agenda.

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Tariffs Toppled

In a ruling certain to have reverberations for global trade, the U.S. Supreme Court has struck down most of U.S. President Donald Trump's tariffs. In a 6-3 ruling, the justices said a 1977 "emergency powers" law, which the Trump administration cited as a justification for acting without approval from the U.S. Congress, did not apply to Trump's actions.

Shortly after returning to office, Trump declared a national emergency concerning the importation of illegal drugs from Canada, Mexico and China, and "large and persistent" trade deficits. He used this to invoke the International Emergency Economic Powers Act (IEEPA), which became law in 1977 and gives the president broad economic powers during a national emergency.

Writing for the majority, Chief Justice John Roberts unambiguously disagreed, saying the Trump administration "reads IEEPA to give the President power to unilaterally impose unbounded tariffs and change them at will. That view would represent a transformative expansion of the President's authority over tariff policy. It is also telling that in IEEPA's half century of existence, no President has invoked the statute to impose any tariffs, let alone tariffs of this magnitude and scope. That lack of historical precedent, coupled with the breadth of authority that the President now claims, suggests that the tariffs extend beyond the President's legitimate reach."

Justices Samuel Alito, Clarence Thomas and Brett Kavanaugh dissented. Kavanaugh was the second of Trump's appointees during his first term; the other two, Neil Gorsuch and Amy Coney Barrett, sided with the majority.

"The tariffs at issue here may or may not be wise policy," Kavanaugh said in the dissent. "But as a matter of text, history and precedent, they are clearly lawful."

The three justices appointed by Democratic presidents--Sonia Sotomayor, Elena Kagan and Ketanji Brown Jackson--disagreed with some details in Roberts' opinion, but they agreed with the core finding that the IEEPA does not authorize the president to impose tariffs unilaterally.

As noted by Yahoo Finance's Ben Werschkul, the decision does not address the question of eligibility for tariff refunds, "which is likely to lead to a complex legal process for companies."

A Year of Global Economic Change Comes to an End

Since he returned to office early last year, Trump consistently has used tariffs as an economic weapon and a bargaining tool with other nations. It is not yet known how even near-term trade actions will be affected by the ruling.

Industrial Info is tracking the fallout from the Supreme Court ruling and will issue updates as needed.

Among the most recent examples was Trump's threat to use retaliatory tariffs on eight European nations that opposed his proposed annexation of Greenland. Trump ultimately backed down after the European Union (EU) threatened a heretofore unseen retaliation of its own. For more information, see January 22, 2026, article - Trump Backs off European Tariff Threat over Greenland.

The effects of Trump's tariffs have appeared in nearly every corner of the U.S. economy. In a recent media briefing, executives at the Port of Los Angeles and neighboring Port of Long Beach, two of the top U.S. ports for containerized exports, pointed to a dramatic drop in U.S. exports to China. For more information, see February 20, 2026, article - Major California Ports See Shift Away from China Exports.

The tariffs also have inspired once-favored U.S. trading partners to seek other arrangements. Canadian Prime Minister Mark Carney recently visited China to reset bilateral relations with an agreement on energy, clean technology and other factors, marking the first visit of a Canadian prime minister to Beijing since 2017. Carney is working to halve the amount of U.S. trade over the coming years after Trump's tariffs led to a dramatic decline in bilateral relations. For more information, see January 16, 2026, article - Canada, China Ink Strategy Agreements.

Similarly, the EU recently signed its largest-ever free trade agreement with India, partly in response to Trump's tariffs. For more information, see February 09, 2026, article - Landmark Europe-India Free Trade Deal.

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About IIR News Intelligence
IIR News Intelligence is a trusted source of news for the industrial process and energy markets, powered by Industrial Info Resources' Global Market Intelligence (GMI).

About Industrial Info Resources
Industrial Info Resources (IIR News Intelligence) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 250,000 current and future projects worth $30.2 trillion (USD).