On February 20, 2026, the United States Supreme Court issued a
highly anticipated ruling in a pair of monumental consolidated
cases, Learning Resources, Inc. v.
Trump and Trump v. V.O.S. Selections,
Inc. The Court, in a 6-3 split, held that the
International Emergency Economic Powers Act (“IEEPA”)
does not authorize a President to issue tariffs.
In other words, the Court rejected the legal basis for many of
the tariffs that President Trump has imposed during his second
term, such as reciprocal tariffs. These tariffs have generated
billions in tax revenues since they were imposed. Accordingly, the
Court's decision is one of the most important decisions of
President Trump's second term. This Client Alert examines the
decision and the likely effect it will have on international and
domestic trade.
