In a significant ruling on February 20, 2026, the U.S. Supreme Court struck down President Donald Trump's sweeping global tariffs, declaring them unlawful under the International Emergency Economic Powers Act (IEEPA). The court's 6-3 decision emphasized that the president exceeded his constitutional authority by imposing tariffs without congressional approval. Chief Justice John Roberts stated, "The president must 'point to clear congressional authorization' to justify his extraordinary assertion of the power to impose tariffs," underscoring the limitations of executive power in trade matters. This ruling has major implications for U.S. trade policy, affecting not only Trump's tariff regime but also the broader economic landscape, as it could lead to refunds of over $175 billion collected from tariffs since their implementation, according to estimates from the Penn-Wharton Budget Model.