The Constitution gives the power to tax imports to Congress. For decades, Congress has lent pieces of that power to the President. In 2026, the Supreme Court drew a line.
What the Constitution Says
Article I, Section 8 gives Congress the power “to lay and collect Taxes, Duties, Imposts and Excises” and “to regulate Commerce with foreign Nations.” A tariff is a duty on imports, so the starting point is clear: tariffs belong to Congress.
Over the years, Congress has delegated specific tariff authority to the President through statutes with defined limits, including Section 232 of the Trade Expansion Act of 1962 (national security), Section 301 of the Trade Act of 1974 (unfair trade practices) and Section 122 of the same act (balance-of-payments problems, capped in size and duration).
The IEEPA Tariffs
Beginning in 2025, the administration imposed broad “reciprocal” tariffs and tariffs tied to drug trafficking under a different law: the International Emergency Economic Powers Act of 1977 (IEEPA). IEEPA allows the President, during a declared national emergency, to “regulate” or “prohibit” imports. The question was whether “regulate” includes the power to impose tariffs.
The Ruling
On February 20, 2026, in Learning Resources, Inc. v. Trump, decided together with Trump v. V.O.S. Selections, the Supreme Court ruled 6-3 that IEEPA does not authorize tariffs. The majority reasoned that when Congress delegates tariff power, it does so expressly and with limits on amount, duration or procedure. IEEPA never mentions tariffs or duties.
In dissent, Justice Kavanaugh warned of the disruption and fiscal cost of unwinding tariffs already collected. IEEPA-based tariffs ended at 12:00 a.m. Eastern on February 24, 2026. Tariffs imposed under other statutes, such as Section 232, were not affected by the ruling.
Who Paid, and Who Gets Refunds
Tariffs are paid to Customs and Border Protection by the importer of record, usually an American business. How much of that cost is passed on to consumers through higher prices is a subject of ongoing economic study and debate.
Refunds are not automatic. The Court’s opinion did not spell out how duties already collected will be returned. That question now moves to the Court of International Trade and to Customs and Border Protection. Importers of record should keep detailed entry records and watch for guidance on how to file.
Why It Matters Beyond Trade
This case was about more than tariffs. It addressed a basic constitutional question that runs through much of Truth Trench’s work: when Congress hands power to the executive branch, how far does that grant reach? The Court’s answer was that broad emergency language is not a blank check for powers Congress has always granted explicitly.
Keep Digging With Truth Agent
This article is a starting point. Truth Agent puts the public record at your fingertips, including the Constitution, federal law, regulations, court opinions and oversight reports, so you can read the Constitution, the trade statutes and the court opinions for yourself without relying on anyone’s summary, including ours.
