SCOTUS strikes down Trump Administration tariff policy

Today, the Supreme Court made a decision striking down the Trump Administration’s use of the International Emergency Economic Powers Act to impose across-the-board tariffs.

“Today’s decision is welcome news for businesses and American families who have struggled with unpredictable trade policy,” said Alex Wolf, Founder of Spielcraft Games in Omaha, Nebraska (via Tariffs Cost Us). “By restoring limits and accountability to how tariffs are imposed, the Court has taken an important step toward greater stability and clarity for American businesses and families.

“The ruling opens the door to a more thoughtful and transparent approach to trade policy. With congressional oversight and decisions grounded in economic reality, tariff policy can provide the predictability businesses need to plan, invest, hire, and keep prices down for consumers.

“With this decision, Congress has a real opportunity to restore stability to U.S. trade policy. By stepping in with clear rules and consistent oversight, lawmakers can help businesses and families move forward with confidence and renewed certainty.”

Analysis from The Budget Lab at Yale shows that even with the IEEPA tariffs struck down, consumers and businesses continue to face an average effective tariff rate of 9.1 percent, the highest level since 1946, excluding 2025. Those tariffs are expected to raise the price level by 0.6 percent in the short run, costing the average household about $800 and households at the bottom of the income distribution roughly $400.

While the Court’s decision removes one legal pathway for imposing broad emergency tariffs, it does not eliminate the possibility that the Administration or Congress could pursue alternative tariffs that would result in similar disruptions and costs for farmers, small businesses and consumers.

The Gayly online. 2/20/26 @ 11:50 a.m. CST.