On February 20th 2026, the U.S. Supreme Court struck down tariffs imposed under the International Emergency Economic Powers Act (IEEPA), holding that Congress did not delegate authority to the President to levy tariffs through that statute. The Court affirmed lower‑court rulings that invalidated the Fentanyl, Worldwide, and Reciprocal Tariffs, concluding that the power to “regulate” imports does not equate to the power to tax.
The decision sends the case back to the U.S. Court of International Trade to determine the appropriate scope of relief. In the near term, companies affected by the invalidated tariffs are expected to pursue refunds through administrative protests or litigation.
Looking ahead, the ruling creates uncertainty around tariffs established through post‑IEEPA bilateral arrangements and shifts attention to alternative trade authorities (such as Sections 122, 232, and 338), each with more defined limits. Notably, the decision does not affect potential future tariffs related to the pharmaceutical industry under Section 232, as the President can levy tariffs pursuant to Section 232 following a determination by the U.S. Department of Commerce that imports related to a sector or good threatens to impair national security. Tariffs under Section 232 do not have limits as to their maximum rates or durations, but these tariffs are limited in scope to only addressing the national security threat.
