Supreme Court weighs Trump's tariff power

The U.S. Supreme Court is weighing one of the most consequential trade-power disputes of its current term: whether Donald Trump could use the International Emergency Economic Powers Act, or IEEPA, to impose the sweeping tariffs he branded “Liberation Day” tariffs. The legal fight has already produced a major ruling this year, with the court holding on February 20 that IEEPA does not give the president authority to impose tariffs in the cases before it. (congress.gov) That decision did not end the commercial fallout. Amazon is now facing a proposed class action in Seattle alleging it kept tariff-related costs charged to shoppers while not pursuing available refunds after the ruling, prolonging the dispute beyond the courtroom. (bloomberg.com) ### What exactly did the Supreme Court decide in February? On February 20, 2026, the Supreme Court ruled 6-3 in *Learning Resources, Inc. v. Trump* and *Trump v. V.O.S. Selections, Inc.* that IEEPA does not authorize the president to impose tariffs. Chief Justice John Roberts wrote the opinion, according to a Congressional Research Service summary published three days later. The court affirmed lower-court decisions invalidating two sets of tariffs: duties on imports from Canada, Mexico and China tied to declared emergencies over illicit drugs, and a broader set of tariffs on most other imports tied to a declared emergency over the U.S. trade deficit. CRS said IEEPA allows a president to “regulate” or “prohibit” certain imports, but the statute does not specifically authorize tariffs. (congress.gov) ### Why were these tariffs called “Liberation Day” tariffs? On April 2, 2025, Trump announced the tariff program that later became known as the “Liberation Day” tariffs, according to legal summaries of the case. A National Law Review analysis said the package included a baseline duty of at least 10% on imports from every U.S. trading partner, with higher country-specific rates for dozens of nations. (congress.gov) That same analysis said Trump had earlier invoked IEEPA on February 1, 2025, to impose tariffs on Canada, Mexico and China, citing emergencies related to drug trafficking. The broader April program was tied to the trade deficit and became the centerpiece of the later court challenge. (congress.gov) ### If the tariffs were struck down, why is Amazon being sued now? On May 18, 2026, a Yahoo Finance report said Amazon was sued in federal court in Seattle in a proposed class action over tariff refunds. The complaint alleges Amazon passed unlawful tariff costs on to shoppers through higher prices, then failed to seek reimbursement after the Supreme Court’s February decision opened a path for businesses to recover money from the federal government. (natlawreview.com) The lawsuit says Amazon pocketed “hundreds of millions of dollars” in unlawful tariff costs and chose not to pursue refunds because it wanted to “curry favor with Trump by allowing the federal government to retain the funds.” Yahoo Finance, citing the complaint, reported that shipping companies including DHL, FedEx and UPS had already begun the refund process, while Amazon had not. (congress.gov) ### Does the ruling wipe out all Trump tariffs? Section 232 and Section 301 tariffs were not invalidated by the February ruling. CRS said Congress has enacted other laws that authorize the executive branch to impose tariffs in specified circumstances, including Section 232 of the Trade Expansion Act of 1962 and Section 301 of the Trade Act of 1974. (finance.yahoo.com) Yahoo Finance likewise reported that the Supreme Court’s decision was narrow in scope and did not invalidate all tariffs, even as it removed IEEPA as the legal basis for the challenged measures. That distinction matters for companies still dealing with import costs outside the IEEPA cases. (finance.yahoo.com) ### How is Trump talking about the court as other cases loom? On May 21, 2026, Trump said “birthright citizenship is a disgrace,” according to Bloomberg’s video report, and said he expected the Supreme Court to allow his position. Bloomberg said justices are expected to hand down a decision in that case before they leave for the summer. (congress.gov) The tariff dispute and the birthright citizenship case now sit in the same end-of-term window. The next concrete milestones are the court’s remaining opinions before summer recess and the early procedural stages of the Amazon case in federal court in Seattle. (bloomberg.com) (finance.yahoo.com)