Supreme Court strikes down Trump tariffs in landmark ruling, administration pivots to new levies on 60 economies

The US Supreme Court told the president he can’t use emergency powers to slap tariffs on America’s biggest trading partners. So the administration did what any determined policymaker would do: it found a different law.

In a 6-3 ruling in Learning Resources, Inc. v. Trump, the Court held that the International Emergency Economic Powers Act does not grant the president authority to impose tariffs on imports from Canada, Mexico, and China. Chief Justice John Roberts wrote that the IEEPA’s provisions to “regulate…importation” simply do not stretch far enough to cover tariff imposition.

What the Court actually said

The February 20, 2026 decision was the most significant check on presidential trade authority in decades. The IEEPA had been the legal backbone for some of the broadest tariffs in modern American history, covering goods from three of the country’s largest trading partners.

Those tariffs had generated over $130 billion in collected revenue before the Court pulled the plug.

The six-justice majority included appointees from both Republican and Democratic presidents. The three dissenting justices argued for a broader reading of executive emergency powers.

The Section 301 pivot

By late July 2026, the Trump administration had announced replacement tariffs ranging from 10% to 12.5% on goods from approximately 60 economies. The new legal vehicle: Section 301 of the Trade Act of 1974, a statute that gives the US Trade Representative authority to respond to unfair trade practices.

The administration is framing these tariffs around forced labor in global supply chains rather than trade deficits or national security. The new duties, effective July 23–24, target economies where the administration alleges human rights violations are embedded in manufacturing and export processes.

Moving from three countries under IEEPA to roughly 60 economies under Section 301 broadens the tariff net considerably. The rates are lower, but the coverage is far wider.

What crypto markets made of all this

Bitcoin responded to the original February Supreme Court ruling with a brief surge of approximately 2%, pushing prices above $68,000. The broader digital asset market capitalization expanded to around $2.38 trillion as traders interpreted the decision as a reduction in trade-policy uncertainty.

Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.