Washington, D.C. – The U.S. Supreme Court on Friday, February 20, 2026, delivered a sharp rebuke of presidential power, ruling that sweeping tariffs imposed under emergency authority were unconstitutional.
In a 6–3 decision, the court found the administration lacked clear authorization from Congress to levy broad import taxes under the International Emergency Economic Powers Act (IEEPA).
According to the majority opinion written by Chief Justice John Roberts, Congress must explicitly grant tariff authority. The court determined that standard was not met.
Justices Clarence Thomas, Samuel Alito and Brett Kavanaugh dissented.
The case was brought by businesses and importers — including Costco — that argued the tariffs exceeded executive authority. Court filings show the federal government collected more than $130 billion from the tariffs as of last December.
The ruling does not accuse the president of committing a crime. However, it does formally conclude that the administration acted beyond the constitutional limits of executive power.
For consumers, the impact could be significant. Tariffs function as taxes on imported goods, and economists have long debated how much of that cost was passed along to shoppers through higher prices.
The court did not outline how previously collected funds would be handled, leaving open questions about potential refunds and whether any financial relief would reach consumers.
Beyond trade policy, the decision is likely to intensify debate in Washington over the scope of emergency powers and congressional oversight of economic actions.
The message from the high court was clear: executive authority has boundaries — and Congress must define them.
Would you expect prices to change if those tariffs are reversed?
