Story perspectives

Supreme Court Considers Legality of Trump's Emergency Tariffs

2/12/2026

Summary

Story summary

The U.S. Supreme Court weighs whether tariffs imposed by U.S. President Donald Trump under emergency powers are lawful.
More than 1,000 companies, including Ferragamo and e.l.f. Cosmetics, file lawsuits seeking refunds worth billions, arguing International Emergency Economic Powers Act (IEEPA) does not authorize tariffs.
Tariff collections rose to $30 billion in January, widening the federal deficit and signaling a Supreme Court ruling could affect the financial outlook for many businesses.

History

Historical Context

The International Emergency Economic Powers Act (IEEPA), enacted in 1977 under President Jimmy Carter, allows the U.S. President to regulate international commerce during national emergencies. This law has been invoked multiple times, including by President Trump, leading to over $30 billion in tariffs collected in January 2023. The Supreme Court's current deliberation on these tariffs could redefine the limits of presidential power in economic sanctions.

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Story summary

The U.S. Supreme Court weighs whether tariffs imposed by U.S. President Donald Trump under emergency powers are lawful.
More than 1,000 companies, including Ferragamo and e.l.f. Cosmetics, file lawsuits seeking refunds worth billions, arguing International Emergency Economic Powers Act (IEEPA) does not authorize tariffs.
Tariff collections rose to $30 billion in January, widening the federal deficit and signaling a Supreme Court ruling could affect the financial outlook for many businesses.

1 / 2