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Supreme Court Trump tariffs ruling could put U.S. on hook for $175 billion in refunds, estimate says

The Supreme Court invalidated tariffs imposed under the 1977 emergency law, raising potential refund claims exceeding $175 billion, as Congress holds sole tariff authority.

  • On Feb. 20, 2026, the U.S. Supreme Court issued a 6-3 opinion led by Chief Justice John Roberts that invalidated President Donald Trump's tariff authority under the International Emergency Economic Powers Act of 1977 .
  • Legal actors treated the case as a novel test of presidential emergency trade authority, with Trump proposing a temporary 10% global tariff under Section 122 powers, prompting litigation.
  • Trump attacked justices who voted against him and praised Brett Kavanaugh, Clarence Thomas, and Samuel Alito, with CNN's Kristen Holmes saying `He is clearly angry.'
  • He learned the ruling while meeting governors and immediately signaled a backup plan, while Congress faces a 150-day window to extend any implemented tariff.
  • A reporter asked whether dissenting justices will attend the State of the Union on Tuesday, Feb. 24, amid the political stakes from the court's ruling, which Trump criticized.
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The U.S. Supreme Court declared the majority of tariffs imposed by the U.S. government invalid on Friday, a decision that represents a major judicial setback to President Donald Trump's agenda. The highest court considered that he overstepped the powers invoked to impose much of his taxes on the country's trading partners. Following the decision, Donald Trump signed a 10 percent global tariff on all countries from the Oval Office on the same day…

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Impulsobaires broke the news in on Friday, February 20, 2026.
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