A 6-3 vote on Feb. 20 by the Supreme Court ruled that President Donald Trump has no authority to impose tariffs under the International Emergency Powers Act (IEEPA). Following this ruling, Trump announced plans of a global tariff of 15%—5% higher than his original percentage from the previous day.  

According to MSN, “IEEPA is a federal law enacted in 1977 that gives the US president authority to regulate certain international economic transactions after declaring a national emergency.”  

In April 2025, Trump announced that the U.S would impose a minimum of a 10% tariff on goods imported from all foreign countries, turning to IEEPA to respond to trade deficits. He became the first president to use IEEPA to impose tariffs. As of December 2025, the treasury collected a lower of $133 billion and an upper of $175 billion from these tariffs. 

The ruling highlighted that the IEEPA does not give Trump the authority to tax imports, and that power lies with Congress. Of the 6-3 vote, Justices Samuel Alito, Clarence Thomas and Brett Kavanaugh dissented.  

The ability for importers to receive refunds was a factor behind Kavanaugh’s decision, stating that the process “is likely to be a mess.” However, the court did not give a direct response to that answer, only stating that consumers are unlikely to receive refunds. 

Hours after the ruling, the Trump Administration invoked the Trade Act of 1974. This decision will allow for a 10% tariff on most imports to last 150 days. This tariff is currently in effect from Feb. 24 through July 24.  

The 15% tariff is still being adjusted, but does not have a date set for implementation.