Supreme Court Strikes Down IEEPA Tariffs in Landmark 6-3 Decision

In a landmark 6-3 decision on February 20, 2026 in Learning Resources Inc. v. Trump and V.O.S. Selections v. United States, the Supreme Court ruled that IEEPA does not authorize the President to impose tariffs, invalidating the 'fentanyl' tariffs on Canada, China, and Mexico, and the reciprocal tariffs. U.S. Customs is processing refunds on an estimated $166 billion collected from over 330,000 businesses. The ruling dropped the average effective tariff rate from approximately 27% to 13.7%.

• IEEPA ruled not to authorize presidential tariff authority
• Fentanyl tariffs on Canada, China, and Mexico invalidated
• Reciprocal tariffs struck down
• Average effective tariff rate dropped from 27% to 13.7%
• U.S. Customs processing refunds on $166 billion collected