WASHINGTON — In a major landmark 6–3 decision issued on February 20, 2026, the Supreme Court struck down President Trump's sweeping global tariffs, a move expected to eventually lower prices for groceries and other consumer goods.
The ruling invalidates tariffs imposed under the International Emergency Economic Powers Act (IEEPA), which had added significant costs to imported products. Chief Justice John Roberts, writing for the majority, stated that the IEEPA does not grant the president authority to impose tariffs. He was joined by three liberal justices and two conservatives, Neil Gorsuch and Amy Coney Barrett.
This ruling could mean:
- Reduced Consumer Burden: Economists estimate that without these tariffs, the average cost burden on consumers could fall by approximately $600 to $800 in 2026.
- Lower Grocery Costs: The decision removes "backdoor taxes" on essential items. Previously, these tariffs had contributed to higher prices for groceries, including imported meats, produce, and packaged goods.
- Gradual Decline: Experts caution that prices won't drop immediately; it will take time for the supply chain to adjust as retailers sell through inventory already purchased at higher, tariffed rates.
The ruling also opens the door for U.S. companies to seek billions of dollars in refunds for tariffs already paid, which may provide businesses with the capital to lower prices for their customers.
It’s still unclear how much relief businesses and consumers will ultimately see from the ruling. Just hours after the decision, Trump vowed to invoke a separate law to impose a 10% tariff on all imports for 150 days and said he would consider additional measures to levy further tariffs on countries he argues engage in unfair trade practices.
Key details of the ruling
The Court found that the 1977 IEEPA does not grant the president unilateral authority to impose "unbounded" tariffs.
- Majority Opinion: Chief Justice John Roberts wrote that the Constitution vests the power to tax in Congress, not the Executive Branch.
- Scope: While most global tariffs were struck down, certain "Section 232" tariffs on materials like steel and aluminum remain in place as they rely on a different legal authority.
- Economic Context: Prior to the ruling, the Federal Reserve estimated that these tariffs had added about a half-percentage point to inflation.
“The Framers [of the Constitution] recognized the unique importance of this taxing power — a power which ‘very clear[ly]’ includes the power to impose tariffs,” the ruling states.
The opinion, wrote Justice Roberts, found that Congress’ taxing power can not be handed off through vague language, rejecting the administration’s argument that the words “regulate” and “importation” in IEEPA gave the president broad powers to impose tariffs.
“Recognizing the taxing power’s unique importance, and having just fought a revolution motivated in large part by ‘taxation without representation,’ the Framers gave Congress ‘alone . . . access to the pockets of the people,’” the ruling said.
The opinion rejected the administration’s argument that the president’s declaration of a national emergency was sufficient to unlock extraordinary tariff power that could only be restrained by a “veto-proof majority in Congress.”
Industry groups praise decision
“We are continuing to review the ruling and its impact on FMI members. This decision raises many questions that must be answered quickly to minimize confusion in the marketplace. We urge Congress, the Trump administration and other relevant stakeholders to work together to establish a process that provides clarity for food businesses and the American consumers they serve every day," said FMI president and CEO Leslie Sarasin.
“FMI also strongly encourages the Trump administration to preserve exemptions for agricultural goods not produced in the United States and those not grown domestically in sufficient quantities to meet consumer demand, as well as items covered under the USMCA. These exemptions have been critical for ensuring adequate supply and they support President Trump’s efforts to keep groceries affordable for the American people," she pointed out.
“As the implications of this decision become clearer in the coming weeks, we stand ready to work with the Trump administration and policymakers to ensure we continue to have the safest, most abundant and affordable food supply in the world,” she concluded.
The National Retail Federation said Friday’s ruling on tariffs “provides much-needed certainty for U.S. businesses and manufacturers, enabling global supply chains to operate without ambiguity.”
“Clear and consistent trade policy is essential for economic growth, creating jobs and opportunities for American families,” NRF executive vice president of Government Relations David French said in a statement. “We urge the lower court to ensure a seamless process to refund the tariffs to U.S. importers. The refunds will serve as an economic boost and allow companies to reinvest in their operations, their employees and their customers.”
