The U.S. Supreme Court rules that the Trump administration's large-scale tariff policies are illegal

On the 20th local time, the U.S. Supreme Court ruled that the large-scale tariff measures implemented by the Trump administration under the International Emergency Economic Powers Act lack clear legal authorization.

On that day, the Supreme Court upheld the lower court’s decision by a 6-3 vote, ruling that Trump’s invocation of the International Emergency Economic Powers Act to implement tariff policies exceeded his statutory authority. The Supreme Court made this conclusion in lawsuits filed by businesses and 12 U.S. states. These businesses and states argued that Trump’s unilateral imposition of import taxes based on this law was unprecedented.

However, the ruling only restricts the president from implementing tariffs through the International Emergency Economic Powers Act and does not entirely strip him of the authority to impose tariffs. Trump had previously levied tariffs on products such as copper, steel, and aluminum under other trade laws.

The Supreme Court did not explicitly address whether the tariffs already imposed should be refunded or how to do so. It is reported that this practical issue may need further rulings by lower courts.

Earlier, economists at the Wharton Budget Model at the University of Pennsylvania estimated that the tariffs imposed by the Trump administration under the International Emergency Economic Powers Act exceeded $175 billion. (CCTV Reporter Zhu Lei)

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After taking office in January 2025, the Trump administration invoked the International Emergency Economic Powers Act to implement a series of tariff increases without congressional approval through executive orders. This action was challenged multiple times by U.S. companies and several state governments. In May of that year, the U.S. International Trade Court ruled that the Trump administration’s actions were illegal and prohibited the enforcement of executive orders imposing tariffs on multiple countries under the International Emergency Economic Powers Act.

In August 2025, the U.S. Federal Circuit Court of Appeals upheld the ruling of the U.S. International Trade Court but did not immediately prohibit the Trump administration from continuing to impose tariffs under the law. The Supreme Court held oral arguments on the case in November of that year, with several justices questioning the legality of the Trump administration’s comprehensive tariff policy.

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Trump: U.S. Supreme Court’s Tariff Ruling “Shameful” and Alternative Plans Ready

CCTV reporter learned on February 20 local time that President Trump stated that the Supreme Court’s ruling declaring the tariff policy illegal was “shameful.” According to informed sources, during a breakfast meeting with governors at the White House that day, Trump said he had considered alternative plans to address the impact of the court’s ruling.

U.S. May Need to Refund $175 Billion in Tariffs

The U.S. Supreme Court ruled that the Trump administration’s large-scale tariff policy was illegal. Since December 14, the Trump administration has not provided tariff collection data. However, earlier today, economists at the Wharton Budget Model estimated that the tariffs imposed under the International Emergency Economic Powers Act exceeded $175 billion. With the Supreme Court ruling these tariffs illegal, this amount may need to be refunded.

(Source: CCTV News)