Friday, February 20, 2026
Click here to read full trade update – prepared by Monument’s Trade team.
This morning, the Supreme Court ruled in a 6-3 split decision that the President cannot use the International Emergency Economic Powers Act (IEEPA) to levy tariffs, holding that the power of taxation remains in the hands of Congress.
The Supreme Court’s ruling invalidates most of the Trump administration’s sweeping tariffs—which had been imposed under emergency declarations using IEEPA—including duties justified on the basis of fentanyl and drug-trafficking threats associated with Canada, Mexico, and China and broad “reciprocal” tariffs tied to U.S. global trade imbalance.
In the majority opinion, issued by Chief Justice John Roberts, the Court found that “the President asserts the extraordinary power to unilaterally impose tariffs of unlimited amount, duration, and scope. In light of the breadth, history, and constitutional context of that asserted authority, he must identify clear congressional authorization to exercise it.” Given that IEEPA granted the authority to “regulate… importation” but did not directly mention tariffs or duties, the Court held that “IEEPA does not authorize the President to impose tariffs.”
Where Does the Trump Administration Go From Here?
Click here to read full trade update – prepared by Monument’s Trade team.