It has been a whirlwind few days in the courts. You're right—on Friday, February 20, 2026, the Supreme Court issued a landmark 6-3 ruling that struck down the broad tariffs President Trump had imposed using the International Emergency Economic Powers Act (IEEPA).
Here is the breakdown of what happened and what it means for the current "tariff war":
1. What the Court Decided
In the case Learning Resources, Inc. v. Trump, the Supreme Court ruled that the President does not have the authority to unilaterally impose tariffs under IEEPA.
* The Reason: The Court held that the power to tax (which includes tariffs) belongs exclusively to Congress under Article I of the Constitution.
* The "Wrong Box": The justices essentially said the administration used the wrong legal tool. While IEEPA allows the President to "regulate" commerce during emergencies, the Court ruled that "regulating" doesn't automatically mean "taxing."
2. Which Tariffs Are "Shut Down"?
The ruling specifically invalidated the tariffs that were justified using IEEPA, including:
* The 10% baseline global tariff.
* The "Reciprocal Tariffs" (targeting countries with trade surpluses).
* The "Trafficking and Immigration Tariffs" (targeting Mexico and China over fentanyl and border issues).
3. The Administration's Immediate Pivot
The "shutdown" was very short-lived. Within hours of the ruling on Friday, the President pivoted to a different law: Section 122 of the Trade Act of 1974.
* New Tariffs: He immediately announced a new 10% (later boosted to 15%) across-the-board tariff, citing "large and serious balance-of-payments deficits."
* The Catch: Unlike the IEEPA tariffs, Section 122 tariffs are legally limited—they can only last for 150 days unless Congress votes to extend them.
4. What about refunds?
This is the big question for businesses. The Court didn't explicitly order immediate refunds for the billions already collected over the last year. It sent that issue back to the Court of International Trade to figure out the logistics, which experts say could take months or years to resolve.
Would you like me to look into which specific products or countries are affected by the new "Section 122" tariffs he just signed?
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