Friday, 20 February 2026

holding court (13. 196)

With dissent from justices Thomas, Alito and Kavanaugh, the US supreme court ruled that Trump has overstepped his executive authority in imposing tariffs on foreign imports under the 1977 emergency statue, IEEPA, which never specifically mentions the power to mediate through levies. The some thirty-billion dollars in monthly revenue, borne overwhelmingly by American consumers by exporters and businesses shifting the levy in increased prices, will be refunded—the mechanics of the remedy a chief point of contention leading up to the ruling (as most exporters’ damages were made whole by the above means) though not taking into account the illusory economic benefits of reshoring that haven’t materialised—concluding that the onus will be messy but manageable. The president could keep his trade schedule in place if congress had been involved and can still leverage tariffs up to fifteen percent for a limited one hundred fifty day period unilaterally under a provision of the 1974 Trade Act, if endorsed by the department of commerce—significantly more onerous for the administration that has preferred rule by diktat. Moreover, the six-three ruling significantly blunts Trump’s ability to use threats of punitive tariffs as a diplomatic tool to get what he wants. The declaration that the key pillar of economic plan was illegal came, also citing the major questions doctrine which reaffirms the prerogative and responsibility of the legislative branch the exercise of tariffing outside of wartime—arguing that congress only delegated its authorisation under explicit and limited terms and conditions, as Trump was hosting a breakfast for state governors, Democrats disinvited, which he reportedly called a disgrace of justice.