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Supreme Court Rules on Trump Tariffs

Reported by Alecia Venkataraman, Michael Jorge, Michael McDevitt, Toni Mitchell

  • Published: Feb 20, 2026, 6:02 PM EST
  • Updated: Feb 20, 2026, 12:45 PM EST
  • Filed from: Washington, DC
  • Duration: 30 sec
  • Views: 284

In a major blow to President Donald Trump’s sweeping tariffs, the Supreme Court ruled on Friday, 6-3, that he exceeded his authority when he used a law reserved for a national emergency.

Business owners impacted by the tariffs expressed relief that they would no longer have to pay them. They had challenged them in court.

One New York-based business owner who runs an import business said in a statement that the tariffs were “arbitrary, unpredictable, and bad business.”

The Supreme Court, with a conservative majority, gave Trump a rare setback since he began his second term last January.

Trump reportedly called the Court’s decision a “disgrace” during a meeting at the White House with the governors. Meanwhile, the U.S. Treasury Department may have to shell out billions to companies that had to pay the tariffs as they seek refunds. Hundreds have reportedly already sued.

Justice Bret Kavanaugh, in a dissent, said the impact on the Treasury could be huge.

"The Court says nothing today about whether, and if so how, the Government should go about returning the billions of dollars that it has collected from importers," he wrote.

Since December, tariffs under the International Emergency Economic Powers Act (IEEPA) have collected about $130 billion, according to U.S. Customs and Border Protection data. Though Trump himself touted a higher number up to $3 trillion, taking into consideration his administration’s negotiated trade deals. ​ Since Trump began his second term last January, this is a rare setback for his administration regarding the Supreme Court, which has a 6-3 conservative majority.

However, the Supreme Court’s decision does not cover all of Trump’s tariffs, leaving those he imposed on steel and aluminum unaffected, as he used a different law.

It does upend tariffs in two categories. The country-by-country or “reciprocal” tariffs ranged from 34% on China to a 10% baseline on the rest of the world.

The other Trump-imposed tariff was the 25% the president imposed on some goods from Canada, China and Mexico due to what the White House said had been their failure to curb fentanyl flow into the US.

Credits

  • Alecia VenkataramanWriter/Director/staff/aleciavenk
  • Jesse JinesProducer/staff/jesse-jines
  • Michael JorgeSenior Video Editor/staff/michael-jorge
  • Lloyd MorrisVO Artist/staff/lloyd-morris
  • Michael McDevittVideo Editor/staff/michael-mcdevitt
  • Toni MitchellSenior Reporter/staff/toni-mitchell

Transcript

Power Limit

Exceeded

Authorization Required

When one

person

tries

to fire

the

engines

alone

Over ride

denied

the

system is

designed

to stop

it

Today,

the

Supreme

Court

of the

United

States

ruled

that

certain

tariffs

imposed

under

Donald

Trump

went

beyond

Presidential

authority

In space

and in

government,

no single

person

controls

the ship