Supreme Court Rules Trump Lacked Authority for IEEPA Tariffs

The US Supreme Court ruled on February 20, 2026, that President Trump lacked authority under the International Emergency Economic Powers Act to impose tariffs on imports from virtually every country, Abc reported. " The Liberty Justice Center filed its challenge in mid-April 2025. Most nations, including Australia, faced a flat 10 percent rate while China received higher rates.

Chief Justice John Roberts Jr. wrote that the president "asserts the extraordinary power to unilaterally impose tariffs of unlimited amount, duration, and scope" and must identify clear congressional authorization. US Customs has received tens of millions of refund claims, described as the biggest single issuance in its history.

Oxford Economics estimated $80 billion in tariffs refunded since May 2026, plus interest up to 7 percent, with another $80 billion expected in the following year. Australian clothing brand owner Tom Wilson received a six-figure refund including 6 percent interest in July 2026. Sara Albrecht, chairperson of the Liberty Justice Center, said the firm spent $3.5 million on the case.

She noted receiving calls from Trump supporters that included threats, some violent. " The Liberty Justice Center filed a new lawsuit the same day challenging Section 122 tariffs. White House spokesperson Kush Desai said Trump had "skilfully" used tariffs to renegotiate trade deals and secure investment in American manufacturing.

QUT trade expert Felicity Deane said the decision aligned with the law itself.