{"id":51523,"date":"2026-02-20T11:08:28","date_gmt":"2026-02-20T16:08:28","guid":{"rendered":"https:\/\/stateofthenation.info\/?p=51523"},"modified":"2026-02-20T11:09:18","modified_gmt":"2026-02-20T16:09:18","slug":"supreme-court-strikes-down-trumps-terribly-treacherous-tariffs","status":"publish","type":"post","link":"https:\/\/stateofthenation.info\/?p=51523","title":{"rendered":"<h1><span style=\"color: #003366;\">Supreme Court Strikes Down Trump&#8217;s Terribly Treacherous Tariffs<\/span><\/h1>"},"content":{"rendered":"<p><!--more-->ZeroHedge.com<\/p>\n<p>The Supreme Court on Tuesday\u00a0<strong><a href=\"https:\/\/www.supremecourt.gov\/opinions\/25pdf\/24-1287_4gcj.pdf\">struck down<\/a>\u00a0Trump&#8217;s tariffs<em>.\u00a0<\/em><\/strong>In a 6-3 decision (170-pages), the court ruled that\u00a0<strong>Trump&#8217;s use of the 1977 International Emergency Economic Powers Act (IEEPA)<\/strong>\u00a0&#8211; which constitute about half of the tariffs we&#8217;ve seen under Trump &#8211; was not lawful. Kavanaugh, Thomas and Alito dissented.<\/p>\n<p>&#8220;IEEPA does not authorize the President to impose tariffs,&#8221; wrote the court.<\/p>\n<p><a href=\"https:\/\/www.zerohedge.com\/s3\/files\/inline-images\/Epoch_Times9A6A1052-supreme-court-1200x775-700x420_0.jpg?itok=-akOH-WG\" data-image-external-href=\"\" data-image-href=\"\/s3\/files\/inline-images\/Epoch_Times9A6A1052-supreme-court-1200x775-700x420_0.jpg?itok=-akOH-WG\" data-link-option=\"0\"><picture><img loading=\"lazy\" decoding=\"async\" class=\"inline-images image-style-inline-images\" src=\"https:\/\/assets.zerohedge.com\/s3fs-public\/inline-images\/Epoch_Times9A6A1052-supreme-court-1200x775-700x420_0.jpg?itok=-akOH-WG\" alt=\"\" width=\"500\" height=\"300\" data-entity-type=\"file\" data-entity-uuid=\"5fdc03d7-ba37-4a28-8959-01e63c9c6e04\" data-responsive-image-style=\"inline_images\" \/><\/picture><\/a><\/p>\n<p>The ruling stems from a consolidated challenge brought by small businesses and multiple states,<strong>\u00a0<\/strong>who argued that t<strong>he statute &#8211; originally intended to authorize sanctions and asset freezes during national emergencies &#8211; does not grant the executive branch the power to levy taxes on imports.<\/strong>\u00a0The Court reasoned that\u00a0<strong>the Constitution vests the authority to impose duties and tariffs with Congress alone<\/strong>, and found that IEEPA\u2019s authorization to \u201cregulate \u2026 importation\u201d\u00a0<strong>cannot be interpreted to include the distinct taxing power<\/strong>\u00a0required to enact broad-based tariffs. The ruling affirms lower-court decisions blocking the challenged measures, concluding that\u00a0<strong>the administration\u2019s emergency-based tariff framework exceeded the limits of the statute<\/strong>.<\/p>\n<p>Trump invoked IEEPA to impose his &#8216;reciprocal&#8217; tariffs on nearly every foreign trade partner to address what he called a national emergency over US trade deficits. He invoked it again to impose tariffs on\u00a0<strong>China, Canada and Mexico<\/strong>\u00a0over fentanyl trafficking into the United States.<\/p>\n<p>Friday&#8217;s decision rests on the notion that\u00a0<strong>tariffs are not merely a tool for regulating trade, but a form of taxation<\/strong>\u00a0that the Constitution reserves to Congress. Citing Article I, Section 8, the majority stressed that the power to impose tariffs is \u201cvery clear[ly] \u2026 a branch of the taxing power,\u201d and that the Framers gave Congress \u201calone \u2026 access to the pockets of the people.\u201d\u00a0<strong>The administration had argued<\/strong>\u00a0<strong>that IEEPA\u2019s grant of authority to \u201cregulate \u2026 importation\u201d permitted the President to impose tariffs in response to declared national emergencies.\u00a0<\/strong>The Court rejected that interpretation, noting that while \u201ctaxes may accomplish regulatory ends, it does not follow that the power to regulate includes the power to tax as a means of regulation.\u201d<\/p>\n<p>The majority also pointed to the statute\u2019s text, emphasizing that IEEPA authorizes the President to \u201cinvestigate, block \u2026 regulate, direct and compel, nullify, void, prevent or prohibit\u201d certain transactions &#8211;\u00a0<strong>yet makes no mention of tariffs or duties<\/strong>.<\/p>\n<p>\u201c<strong>Had Congress intended to convey the distinct and extraordinary power to impose tariffs<\/strong>,\u201d the opinion states, \u201c<strong>it would have done so expressly<\/strong>, as it consistently has in other tariff statutes.\u201d<\/p>\n<p>The Court further highlighted a\u00a0<strong>lack of historical precedent\u00a0<\/strong>\u00a0&#8211; noting that that\u00a0<strong>in the nearly 50 years since IEEPA\u2019s enactment, \u201cno President has invoked the statute to impose any tariffs<\/strong>,\u201d and that combined with the sweeping economic impact of the measures at issue &#8211; it was a \u201ctelling indication\u201d that the asserted authority falls outside the President\u2019s legitimate reach.<\/p>\n<div class=\"twitter-tweet twitter-tweet-rendered\"><iframe id=\"twitter-widget-0\" class=\"\" title=\"X Post\" src=\"https:\/\/platform.twitter.com\/embed\/Tweet.html?dnt=false&amp;embedId=twitter-widget-0&amp;features=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%3D%3D&amp;frame=false&amp;hideCard=false&amp;hideThread=false&amp;id=2024866897037054370&amp;lang=en&amp;origin=https%3A%2F%2Fwww.zerohedge.com%2Fpolitical%2Fsupreme-court-rules-tariffs&amp;sessionId=306e26878441eba07ac6b1548ca040c93c09f653&amp;siteScreenName=zerohedge&amp;theme=light&amp;widgetsVersion=2615f7e52b7e0%3A1702314776716&amp;width=550px\" frameborder=\"0\" scrolling=\"no\" allowfullscreen=\"allowfullscreen\" data-tweet-id=\"2024866897037054370\" data-mce-fragment=\"1\"><\/iframe><\/div>\n<div id=\"in-content-2\" class=\"in-content\"><\/div>\n<p>Applying what it characterized as the \u201cmajor questions\u201d framework, the Court reasoned that\u00a0<strong>Congress would not delegate such sweeping control over trade policy through vague language.\u00a0<\/strong>The President\u2019s claim that two words &#8211;\u00a0<strong>\u201cregulate\u201d and \u201cimportation\u201d<\/strong>\u00a0&#8211; authorize tariffs \u201cof unlimited amount and duration, on any product from any country,\u201d the majority wrote, would represent a \u201ctransformative expansion\u201d of executive authority over tariff policy and the broader economy.<\/p>\n<h2>Tariff Refunds?<\/h2>\n<p>Notably,\u00a0<strong>the Court\u2019s ruling does not address what happens to the billions of dollars in tariff revenue already collected under the now-invalidated IEEPA framework,<\/strong>\u00a0leaving open the possibility of a wave of refund litigation in the months ahead.\u00a0<strong>There are currently hundreds of tariff refund lawsuits pending in US trade court.<\/strong><\/p>\n<p>While the majority opinion strikes down Trump&#8217;s use of IEEPA,<strong>\u00a0it offers no guidance on restitution, repayment, or whether importers may be entitled to recover duties<\/strong>\u00a0paid pursuant to tariffs the Court has now deemed unlawful. That omission is likely to shift the next phase of the dispute into the U.S. Court of International Trade, where importers may seek retroactive relief through administrative protests or refund actions.<\/p>\n<p>Justice Kavanaugh\u2019s dissent underscores the stakes, warning that<strong>\u00a0\u201cthe Court\u2019s decision is likely to generate other serious practical consequences in the near term,\u201d adding bluntly: \u201cOne issue will be refunds.\u201d\u00a0<\/strong><\/p>\n<blockquote><p><em>Trump&#8217;s administration has not provided tariffs collection data since December 14. But Penn-Wharton Budget Model economists estimated on Friday that the amount collected in Trump&#8217;s tariffs based on IEEPA stood at<strong>\u00a0more than $175 billion<\/strong>. And that amount likely would need to be refunded with a Supreme Court ruling against the IEEPA-based tariffs. &#8211;<a href=\"https:\/\/www.reuters.com\/legal\/government\/us-supreme-court-rejects-trumps-global-tariffs-2026-02-20\">Reuters<\/a><\/em><\/p><\/blockquote>\n<p><strong>Any such claims could involve complex questions of sovereign immunity, administrative exhaustion, and the availability of equitable relief &#8211; particularly where duties were paid without timely protest<\/strong>. Whether courts ultimately require repayment of unlawfully imposed tariffs may depend not just on the validity of the underlying statute, but on the procedural posture of individual importers and the statutory refund mechanisms available under U.S. customs law.<\/p>\n<p>During arguments on Nov. 5,\u00a0<strong>the court\u00a0<a href=\"https:\/\/www.scotusblog.com\/2025\/11\/court-appears-dubious-of-trumps-tariffs\">seemed skeptical<\/a>\u00a0over Trump&#8217;s authority to use IEEPA<\/strong>, leading most observers observers, including betting markets, to conclude a high probability they&#8217;re struck down at least in part. The Trump administration is appealing lower court rulings that he overstepped his authority, while Trump himself said a Supreme Court ruling against the tariffs would be a &#8220;terrible blow&#8221; to the United States.<\/p>\n<h2>Other Options<\/h2>\n<p>That said,\u00a0<strong>even if that happens, the Trump administration has several other legal avenues\u00a0<\/strong>they can pursue. As\u00a0Deutsche Bank\u00a0noted last month;<\/p>\n<blockquote><p><em>For instance, the sectoral tariffs (e.g. on steel and aluminum) aren\u2019t covered by the court ruling, whilst\u00a0<strong>another option would be to use Section 122 of the 1974 Trade Act<\/strong>, which permits temporary 15% tariffs for 150 days.\u00a0<\/em><\/p><\/blockquote>\n<p>And\u00a0Goldman:<\/p>\n<blockquote><p><em><strong>This won\u2019t be the end of tariffs\u2026<\/strong>\u00a0the administration will almost certainly roll out alternative legal frameworks. Net result is probably slightly fewer tariffs, materially more trade uncertainty, and some incremental deficit concerns.<b>\u00a0Net-net, that\u2019s mildly supportive for equities and mildly negative for bonds\u2026 but\u00a0largely priced for both.<\/b><\/em><\/p><\/blockquote>\n<p>The cases under consideration by the Supremes were brought by businesses affected by the tariffs and 12 mostly blue US states.<\/p>\n<p>Meanwhile,\u00a0<a href=\"https:\/\/polymarket.com\/event\/will-the-supreme-court-rule-in-favor-of-trumps-tariffs\">prediction markets<\/a>\u00a0got this one right.<\/p>\n<p><a href=\"https:\/\/polymarket.com\/event\/will-the-supreme-court-rule-in-favor-of-trumps-tariffs\" data-image-external-href=\"https:\/\/polymarket.com\/event\/will-the-supreme-court-rule-in-favor-of-trumps-tariffs\" data-image-href=\"https:\/\/polymarket.com\/event\/will-the-supreme-court-rule-in-favor-of-trumps-tariffs\" data-link-option=\"2\"><picture><img loading=\"lazy\" decoding=\"async\" class=\"inline-images image-style-inline-images\" src=\"https:\/\/assets.zerohedge.com\/s3fs-public\/inline-images\/image%288%29_5.png?itok=5aUi6019\" alt=\"\" width=\"500\" height=\"254\" data-entity-type=\"file\" data-entity-uuid=\"7b3a313c-54bc-45b3-ae9b-1dde0f47072b\" data-responsive-image-style=\"inline_images\" \/><\/picture><\/a><\/p>\n<p>____<br \/>\n<a href=\"https:\/\/www.zerohedge.com\/political\/supreme-court-rules-tariffs\">https:\/\/www.zerohedge.com\/political\/supreme-court-rules-tariffs<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-51523","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/stateofthenation.info\/index.php?rest_route=\/wp\/v2\/posts\/51523","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/stateofthenation.info\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stateofthenation.info\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stateofthenation.info\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/stateofthenation.info\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=51523"}],"version-history":[{"count":0,"href":"https:\/\/stateofthenation.info\/index.php?rest_route=\/wp\/v2\/posts\/51523\/revisions"}],"wp:attachment":[{"href":"https:\/\/stateofthenation.info\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=51523"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stateofthenation.info\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=51523"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stateofthenation.info\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=51523"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}