Schumer celebrates 'win for the wallets' after Supreme Court torpedoes Trump tariff strategy

'Trump's chaotic and illegal tariff tax made life more expensive and our economy more unstable. Families paid more', Chuck Schumer said
UPDATED FEB 20, 2026
Senate Minority Leader Chuck Schumer said that the Supreme Court decision offered financial relief, arguing that tariffs had raised costs for families and businesses (Getty Images)
Senate Minority Leader Chuck Schumer said that the Supreme Court decision offered financial relief, arguing that tariffs had raised costs for families and businesses (Getty Images)

WASHINGTON, DC: The Supreme Court on Friday, February 20, invalidated a significant portion of President Donald Trump’s tariff policy, ruling that his use of emergency powers to impose sweeping import taxes was unlawful.

The decision marked a major legal setback for one of the central pillars of Trump’s second-term economic agenda.

Senate Minority Leader Chuck Schumer welcomed the ruling, describing it as financial relief for American consumers and businesses. The White House had previously defended the tariffs as necessary to protect US economic interests.

Following the ruling, California Governor Gavin Newsom called on President Donald Trump to issue immediate refunds “with interest,” saying, “Every dollar unlawfully taken must be refunded immediately with interest. Cough up!”

MUNICH, GERMANY - FEBRUARY 13: Governor of California, Gavin Newsom, attends the Panel Discussion 'Playing With Fire: The Need for Decisive Climate Action' at the 62nd Munich Security Conference on February 13, 2026 in Munich, Germany. The conference, which brings together government leaders, security experts and defence ministers, is taking place at a time when the traditional western political and military alliance is facing rupture due to the policies of U.S. President Donald Trump. (Photo by Johannes Simon/Getty Images)
Governor of California, Gavin Newsom, attends the Panel Discussion 'Playing With Fire: The Need for Decisive Climate Action' at the 62nd Munich Security Conference on February 13, 2026, in Munich, Germany (Johannes Simon/Getty Images)

Chuck Schumer says ruling brings relief

Schumer characterized the outcome as financial relief for American households and businesses. “This is a win for the wallets of every American consumer,” he said in a statement.

“Trump’s chaotic and illegal tariff tax made life more expensive and our economy more unstable. Families paid more. Small businesses and farmers got squeezed. Markets swung wildly,” he explained.

WASHINGTON, DC - FEBRUARY 12: Senate Minority Leader Chuck Schumer (D-NY) speaks at a press conference on February 12, 2026 in Washington, DC. The Department of Homeland Security will shut down if congress doesn't pass legislation funding the agency by Friday. (Photo by Heather Diehl/Getty Images)
Senate Minority Leader Chuck Schumer (D-NY) speaks at a press conference on February 12, 2026, in Washington, DC (Heather Diehl/Getty Images)

Schumer said, “We’ve said from day one: A president cannot ignore Congress and unilaterally slap tariffs on Americans. That overreach failed.”

He continued, “Now Trump should end this reckless trade war for good and finally give families and small businesses the relief they deserve.”

Schumer’s remarks followed the high court’s decision to strike down tariffs imposed under the International Emergency Economic Powers Act (IEEPA), a law dating to the 1970s. 

WASHINGTON, DC - MARCH 20: Senate Minority Leader Chuck Schumer (D-NY) speaks to reporters before a
Chuck Schumer (D-NY) speaks to reporters before a meeting with a select group of Senate Republicans, Senate Democrats, and Trump administration officials in the Hart Senate Office Building on Capitol Hill, March 20, 2020, in Washington, DC (Drew Angerer/Getty Images)

The administration had relied on the statute to justify tariffs on numerous countries, citing national emergencies tied to trade imbalances.

Court rejects Trump's use of emergency powers under IEEPA

In its ruling, the Supreme Court determined that the International Emergency Economic Powers Act (IEEPA) did not authorize a president to impose broad-based tariffs.

Chief Justice John Roberts wrote for the majority: “We claim no special competence in matters of economics or foreign affairs. We claim only, as we must, the limited role assigned to us by Article III of the Constitution. Fulfilling that role, we hold that IEEPA does not authorize the president to impose tariffs.”

ROME, GEORGIA - FEBRUARY 19: U.S. President Donald Trump speaks at the Coosa Steel Corporation on February 19, 2026 in Rome, Georgia. Trump delivered remarks on the economy and affordability as the state has started voting to replace the seat vacated by former Rep. Marjorie Taylor Greene. (Photo by Chip Somodevilla/Getty Images)
President Donald Trump speaks at the Coosa Steel Corporation on February 19, 2026, in Rome, Georgia (Chip Somodevilla/Getty Images)

The decision invalidated much of the tariff framework enacted under IEEPA but left in place sector-specific tariffs imposed under separate statutes, including those on steel and aluminum.

The Court did not outline how refunds of previously collected tariffs would be handled, leaving that issue to lower courts.

Three conservative justices dissented, arguing that tariffs qualify as a means to “regulate … importation” under the statute. 

New England Patriots Head Coach Bill Belichick (L) and team owner Robert Kraft (R) present a football helmet to U.S. President Donald Trump during a celebration of the team's Super Bowl victory on the South Lawn at the White House April 19, 2017 in Washington, DC. It was the team's fifth Super Bowl victory since 1960. (Chip Somodevilla/Getty Images)
New England Patriots Head Coach Bill Belichick (L) and team owner Robert Kraft (R) present a football helmet to President Donald Trump during a celebration of the team's Super Bowl victory on the South Lawn at the White House, April 19, 2017, in Washington, DC (Chip Somodevilla/Getty Images)

The ruling is expected to prompt further legal and policy debate over the scope of presidential trade authority and the next steps for the administration’s tariff strategy.

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