The US Supreme Court Rules and Future Prospects of Trump's Tariff Gambit

Yan Liang

Economics Policy Note Archive from Levy Economics Institute

Abstract: On February 20, 2026, the Supreme Court of the United States ruled, by a majority of six to three, that the International Emergency Economic Powers Act (IEEPA) does not provide a legal basis for the Trump administration to impose sweeping tariffs. The decision sent shockwaves through financial markets and foreign capitals alike. IEEPA tariffs--encompassing both the reciprocal tariffs and the fentanyl-related tariffs--accounted for roughly 70 percent of the United States' total tariff architecture. The ruling thus struck at the very heart of the most powerful economic and foreign policy instrument that President Trump has wielded since taking office.

Date: 2026-02
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.levyinstitute.org/wp-content/uploads/2026/02/pn_26_1.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:lev:levypn:26-1

Access Statistics for this paper

More papers in Economics Policy Note Archive from Levy Economics Institute
Bibliographic data for series maintained by Lindsey Carter ().