February 21, 2026
In a 6–3 decision, the Supreme Court ruled that Trump exceeded his powers.
By Robert Hill
President Donald Trump introduced a new 10% global import tariff after the Supreme Court struck down his previous trade plans, ruling that he had overstepped his authority.
In a 6–3 decision, the Supreme Court ruled that Trump exceeded his powers under the 1977 International Emergency Economic Powers Act (IEEPA). The administration had used the act to justify tariffs on goods from almost every country. The court’s decision created a legal setback for the White House and opened the possibility for billions of dollars in refunds to businesses and U.S. states that challenged the policy.
Trump responded to the ruling by calling it “terrible” and accusing the justices who voted against the policy of being “fools.” Despite the decision, Trump indicated that he would turn to alternative legal authorities to continue pursuing his tariff agenda.
Shortly after the ruling, Trump signed a proclamation imposing a 10% global tariff under Section 122. As reported by the BBC, “Which gives the power to put in place tariffs up to 15% for 150 days, at which point Congress must step in.”
Several U.S. states have responded by requesting refunds following the Supreme Court’s decision.
Illinois Gov. JB Pritzker wrote a letter to the Trump administration demanding more than $8 billion in refunds for the state. In the letter, he outlined the exact amount he believes should be repaid.
As reported by CBS News, Pritzker wrote: “On behalf of the people of Illinois, I demand a refund of $1,700 for every family in Illinois. There are 5,105,448 households in my state, bringing the total damages you owe to $8,679,261,600.”
California Gov. Gavin Newsom has also called for a tariff refund. During Trump’s second term, California has been one of the administration’s most vocal critics, filing lawsuits challenging federal policies and tariffs.
Since the ruling, businesses and states may pursue refunds for previously collected tariffs from the Trump administration however, the process could take a while. The Supreme Court stated that Congress had not granted the president open-ended authority to impose tariffs and emphasized that, when Congress delegates tariff powers, it does so under explicit terms and strict limits.
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