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U.S. Supreme Court Blocks President’s Use of IEEPA to Impose Tariffs, Voiding Reciprocal Duties
02/20/2026 - In a landmark decision, the U.S. Supreme Court ruled that the International Emergency Economic Powers Act of 1977 (IEEPA) does not grant the president the ability to impose tariffs, according to the Learning Resources Inc. v. Trump filing on the official U.S. Supreme Court website.
In early 2025, U.S. President Donald Trump used the IEEPA to impose trade deficit “reciprocal” tariffs with all trade partners of at least 10%, said the filing. This has been a key aspect of Trump’s trade policy since his return to office.
Since then, multiple U.S. states and small businesses sued Trump, stating in court filings that “the [reciprocal] tariffs had disrupted their operations and led to higher prices for consumers and cutbacks in staffing,” reported The New York Times.
As of today, the Supreme Court has struck down those reciprocal tariffs.
“We claim no special competence in matters of economics or foreign affairs. We claim only, as we must, the limited role assigned to us by Article III of the Constitution. Fulfilling that role, we hold that IEEPA does not authorize the President to impose tariffs,” wrote Chief Justice John G. Roberts Jr.
The ruling does not apply to the Section 232 steel and aluminum tariffs, which remain in effect. The mechanism under which they were implemented was not subject to the Supreme Court review.
In their press release, the Steel Manufacturers Association (SMA) said that the Section 232 tariffs were “revitalizing the American steel industry, strengthened our national security and fueled the creation of high-quality American jobs.”
“The results of the steel tariff are clear and measurable. For the first time since the 1990s, the United States has surpassed Japan in steel production, rising to become the world’s third-largest steel producer. It has catalyzed more than US$25 billion in investments from our members to modernize facilities, expand domestic capacity, and secure the future of American-made steel,” SMA continued.
In response to the ruling, the United Steelworkers (USW) called on U.S. Congress to revitalize the trade system to develop long-term and sustainable trade policies that disrupt harmful operations but preserves relationships with trusted partners.
“Now, we need sustainable solutions. We call on policymakers to prioritize revamping our trade system,” said USW international president David McCall in an official statement.
Since then, multiple U.S. states and small businesses sued Trump, stating in court filings that “the [reciprocal] tariffs had disrupted their operations and led to higher prices for consumers and cutbacks in staffing,” reported The New York Times.
As of today, the Supreme Court has struck down those reciprocal tariffs.
“We claim no special competence in matters of economics or foreign affairs. We claim only, as we must, the limited role assigned to us by Article III of the Constitution. Fulfilling that role, we hold that IEEPA does not authorize the President to impose tariffs,” wrote Chief Justice John G. Roberts Jr.
The ruling does not apply to the Section 232 steel and aluminum tariffs, which remain in effect. The mechanism under which they were implemented was not subject to the Supreme Court review.
In their press release, the Steel Manufacturers Association (SMA) said that the Section 232 tariffs were “revitalizing the American steel industry, strengthened our national security and fueled the creation of high-quality American jobs.”
“The results of the steel tariff are clear and measurable. For the first time since the 1990s, the United States has surpassed Japan in steel production, rising to become the world’s third-largest steel producer. It has catalyzed more than US$25 billion in investments from our members to modernize facilities, expand domestic capacity, and secure the future of American-made steel,” SMA continued.
In response to the ruling, the United Steelworkers (USW) called on U.S. Congress to revitalize the trade system to develop long-term and sustainable trade policies that disrupt harmful operations but preserves relationships with trusted partners.
“Now, we need sustainable solutions. We call on policymakers to prioritize revamping our trade system,” said USW international president David McCall in an official statement.
