00:15U.S. Supreme Court has struck down President Donald Trump's sweeping emergency tariffs,
00:22and the president is calling the decision a disgrace. On February 20, 2026, in the case of
00:31Learning Resources, Inc. v. Trump, the Supreme Court of the United States ruled 6-3 that President
00:38Trump overstepped his authority. At the center of the fight, the International Emergency Economic
00:45Powers Act, known as IEPA. The court said clearly, this law does not give a president the power to
00:54impose tariffs, and that power, taxing imports, belongs to Congress. The majority opinion,
01:01written by Chief Justice John Roberts, relied on what's known as the Major Questions Doctrine.
01:07In simple terms, if a president takes an action with massive economic and political consequences,
01:13Congress must give clear, explicit permission. The court said that did not happen here.
01:20Notably, two Trump-appointed justices, Neil Gorsuch and Amy Coney Barrett, sided with the
01:25majority, signaling bipartisan skepticism about expanding executive power.
01:31The tariffs in question were significant. They included global, reciprocal duties ranging from
01:3710% to as high as 34% on countries like China, as well as so-called fentanyl tariffs targeting
01:43Canada,
01:44Mexico, and China. These were imposed in April 2025 under the claim of national emergency. But the court
01:52said IEPA allows regulating imports, like quotas or embargoes, not taxing them. Big difference.
01:59President Trump responded quickly. At a White House breakfast with governors,
02:03he reportedly called the decision a disgrace. He argued the ruling undermines his ability to
02:09protect U.S. national security and reduce trade deficits. Just a day before the decision,
02:14during a visit to Georgia, he said he had been waiting forever for the court to rule,
02:19and warned that without his tariff strategy, America could be, quote,
02:23going bankrupt instead of thriving. But here's where this gets even bigger.
02:28The ruling opens the door to massive refunds. Estimates suggest more than $175 billion in tariff
02:36revenue could be returned to importers. That money was collected since April 2025. Major companies
02:43have already filed lawsuits seeking repayment. And while the Treasury has hundreds of billions in cash
02:48on hand, the process could take months, even more than a year. Importantly, not all tariffs are
02:54affected. Measures imposed under Section 232, like steel and aluminum duties, remain in place.
03:00This decision applies only to tariffs imposed under IEPA. And President Trump is not backing down.
03:06He says he has a backup plan, possibly using Section 301 of the Trade Act or Section 232,
03:12both of which have been used in the past to justify trade actions. So while this is a legal setback,
03:17it may not be the end of the trade fight. Bottom line, the Supreme Court just delivered a major
03:24rebuke of presidential power in trade policy, reasserting that Congress, not the White House,
03:29controls taxation. But with billions at stake, a polarized court, and a president promising new
03:34action, the battle over America's trade strategy is far from over.
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