On 20 February 2026, the US Supreme Court issued its judgement on the powers of the President to impose tariffs under the International Emergency Economic Powers Act (IEEPA). Use of tariffs has become a novel and preferred method of President Trump imposing sanctions against various jurisdictions starting from China, Canada, and Mexico, but then literally on almost every country in the world. We covered this matter in our video. We also covered the background leading to the current judgement of the US Supreme Court in our earlier post.
In the opinion written by Chief Justice Roberts, the Court held that IEEPA does not authorise the President to impose tariffs.
The power to impose tariffs is vested under the US Constitution in Congress and, accordingly, may be exercised by the President only of Congress delegated such powers to the President. The Court considered whether such delegation occurred under IEEPA. IEEPA does not expressly delegate to the President the right to imposes taxes or tariffs. Nevertheless, it includes a broad authorisation for the President to “regulate […] imports”. Accordingly, the Court considered whether Congress intended that this authority will include the imposition of tariffs.
By reviewing the text of the act and its legislative background, the Court held that Congress did not intend by using these specific words to delegate to the President powers to impose tariffs. As a result, all tariffs imposed by President Trump under IEEPA are declared unlawful.
Various complex questions arise following this judgement as to the reimbursement of already collected tariffs. These will need to be addressed by lower courts.