The Supreme Court has ruled that the International Emergency Economic Powers Act (IEEPA) does not authorize the president to impose tariffs, invalidating billions in duties. In a 6-3 decision on February 20, 2026, the court determined that the power to levy tariffs resides with Congress, not the executive branch. This ruling affects tariffs on imports from countries including Canada, Mexico, and China, potentially unlocking $175 billion in refunds for U.S. importers. Following the decision, the administration attempted to impose new tariffs under Section 122 of the Trade Act of 1974, citing a balance-of-payments deficit. However, the U.S. Court of International Trade struck down these tariffs, citing insufficient justification. The ruling underscores the constitutional limits on executive power regarding trade policy, emphasizing the need for congressional action to implement such measures.