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Supreme Court Strikes Down Trump’s Emergency Tariffs in 6–3 Ruling

The decision raises prospects for large importer refunds, with timing and mechanics unresolved.

Rick Woldenberg, CEO of Learning Resources and hand2mind, who sued the Trump administration over tariffs that adversely impacted his toy companies and won, poses for a picture, in Vernon Hills, Illinois, U.S., February 20, 2026. REUTERS/Eric Cox
Rick Woldenberg, CEO of Learning Resources and hand2mind, who sued the Trump administration over tariffs that adversely impacted his toy companies and won, poses for a picture, in Vernon Hills, Illinois, U.S., February 20, 2026. REUTERS/Eric Cox
Rick Woldenberg, CEO of Learning Resources and hand2mind, who sued the Trump administration over tariffs that adversely impacted his toy companies and won, poses for a picture, in Vernon Hills, Illinois, U.S., February 20, 2026. REUTERS/Eric Cox
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Overview

  • Learning Resources, an Illinois educational-toy maker, won its challenge as the Court ruled the IEEPA-based tariff program unlawful in a 6–3 decision.
  • The ruling follows the company’s early lawsuit and fast-track appeal after a district court victory last year.
  • Importers could be owed billions in refunds, with estimates of duties collected exceeding $175 billion, but the Court left refund procedures undecided.
  • Trade lawyers say recovering payments will likely require lengthy legal and administrative steps, and Trump could seek different statutory grounds for tariffs.
  • Learning Resources says it paid about $10 million in 2025 duties, curtailed expansion plans, and reworked its supply chain as most of its products are made in China.