Supreme Court limits presidential tariff authority in major ruling

The U.S. Supreme Court on Feb. 20 delivered a significant legal setback to sweeping tariffs imposed by President Donald Trump, ruling that he lacked the authority under the International Emergency Economic Powers Act (IEEPA) to unilaterally impose broad import duties on most trading partners. The decision, issued in Learning Resources v. Trump and V.O.S. Selections v. Trump, was decided 6–3 with Chief Justice John Roberts writing for the majority.

The Court found that IEEPA “does not authorize the President to impose tariffs,” concluding that language in the 1977 law cited by the Trump administration did not clearly grant the executive branch tariff-setting power. The decision upheld lower court rulings that similar tariffs were unlawful and struck down the foundation for numerous global duties imposed under emergency powers.

The ruling invalidates major tariff measures including high “reciprocal” tariffs and “Liberation Day” levies previously enacted under IEEPA. While some industry-specific tariffs imposed under other laws (such as Section 232 of the 1962 Trade Expansion Act) are expected to remain in place, the invalidated IEEPA tariffs—which had generated tens of billions in revenue—could create questions about refunding importers and future trade policy.