Supreme Court rules IEEPA does not authorize tariffs, striking down Canada, Mexico and 'reciprocal' duties

The U.S. Supreme Court ruled on Feb. 20, 2026, that the International Emergency Economic Powers Act does not give the president the power to impose tariffs. The ruling struck down two sets of duties, including the tariffs on most goods from Canada and Mexico.

What the court decided

The consolidated cases, Learning Resources, Inc. v. Trump and Trump v. V.O.S. Selections, Inc., challenged two groups of tariffs imposed under IEEPA.

The first group was the drug-trafficking tariffs: a 25% duty on most imports from Canada and Mexico and a 10% duty on most Chinese goods. The second was the "reciprocal" tariffs, a duty of at least 10% on imports from all trading partners, with higher rates for dozens of countries.

The chief justice delivered the opinion of the court. The court held that "IEEPA does not authorize the President to impose tariffs." It affirmed the Federal Circuit's ruling in the V.O.S. Selections case, which had been brought by five small businesses and 12 states. Trucking Dive reported that the decision was 6-3.

The opinion noted that the Constitution gives Congress the power to lay and collect duties. It said the government had conceded that the president has no inherent authority to impose tariffs in peacetime.

Industry reaction

Trump said at a news conference that "other alternatives will now be used to replace the ones that the court incorrectly rejected," according to Trucking Dive.

Mike Short, president of global forwarding at C.H. Robinson, said the court "did not address remedies or refunds," leaving those issues to the administration, Congress or litigation. He also said he expected replacement tariffs under different authorities at a similar level.

American Trucking Associations President and CEO Chris Spear said greater long-term certainty in trade helps keep freight flows strong and consistent.

What it meant for carriers

Avery Vise, FTR's vice president of trucking, said he did not see a significant effect on overall trucking volume. He said the uncertainty might bring some volatility, mainly in intermodal drayage and possibly dry van in port regions, if shippers pulled imports forward ahead of any replacement tariffs. He said any such activity might be temporary and would start no earlier than late March, and that there could be a brief effect on the spot market.

The Owner-Operator Independent Drivers Association said greater market stability and clarity could help support a broader recovery for small-business truckers.

Trucking Dive noted that the IEEPA duties were only one form of tariff. Other tariffs levied by the administration stemmed from national security investigations under the Trade Expansion Act of 1962 and from responses to unfair trade practices under the Trade Act of 1974.