By The Canadian Press

U.S. Supreme Court strikes down Trump’s use of emergencies law for tariffs

Feb 20, 2026 | 8:10 AM

WASHINGTON — The U.S. Supreme Court on Friday struck down President Donald Trump’s use of a national security statute to deploy tariffs, reining in his efforts to realign global trade — but the decision doesn’t end all the U.S. duties slamming Canadian industries.

In a 6-3 ruling, the court concluded it was not legal for Trump to use the International Emergency Economic Powers Act, better known as IEEPA, for his “Liberation Day” tariffs and fentanyl-related duties on Canada, Mexico and China.

“The United States Supreme Court’s decision reinforces Canada’s position that the IEEPA tariffs imposed by the United States are unjustified,” Canada-U.S. Trade Minister Dominic LeBlanc said in a post on social media.

“While Canada has the best trade deal with the United States of any trading partner, we recognize that critical work lies ahead to support Canadian businesses and workers who remain affected by Section 232 tariffs on steel, aluminum and automotive sectors.”

Trump has warned repeatedly that if the court ruled against his tariff agenda, it would lead to catastrophic consequences for national security, foreign policy and the economy.

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Justices on the conservative-led Supreme Court appeared skeptical of that argument during a three-hour November hearing, however. Several of them noted the text of IEEPA does not mention tariffs.

Friday’s majority decision found that the U.S. Constitution “very clearly” gives Congress power over taxes and tariffs.

“The Framers did not vest any part of the taxing power in the Executive Branch,” Chief Justice John Roberts wrote.

The ruling did not say whether the companies hammered by those tariffs should get refunds.

George Mason University law professor Ilya Somin, who represented small businesses pushing back on the tariffs, said it’s a win for U.S. separation of powers and the American and Canadian economies.

“But also for the rule of law,” Somin told The Canadian Press. “The rule of law is at odds with a system under which the president can impose any tariffs he wants on any country for any reason at any time. That’s not the rule of law.”

The decision does not affect Trump’s use of other tools to hit Canadian steel, aluminum, automobiles, lumber and other industries with separate duties.

Trump declared an emergency at the northern border related to the flow of fentanyl in order to use IEEPA to hit Canada with 35 per cent tariffs. Those duties do not apply to goods compliant under the Canada-U.S.-Mexico Agreement on trade, better known as CUSMA.

U.S. government data shows a minuscule amount of fentanyl is seized at the border with Canada. Last week, in a symbolic move, the U.S. House of Representatives voted to end the emergency at the northern border.

Friday’s ruling will have little effect on the Canadian economy since most exports were shielded by the CUSMA carveout, said CIBC chief economist Avery Shenfeld.

The larger impact would come from reducing the tariff penalties on Canada if Trump withdraws from the North American trade pact, Shenfeld said.

Trump’s tariffs and threats of annexation have rattled Canada ahead of a mandatory review of the CUSMA trilateral trade pact later this year. Trump has called the trade agreement “irrelevant” and said it may have served its purpose.

A successful CUSMA review must see Trump’s separate sectoral tariffs dropped, said Conservative Leader Pierre Poilievre in a social media post.

Poilievre criticized Prime Minister Mark Carney for not securing a deal with the Trump administration.

“The truth is no one can control what President Trump will say or do and so we must instead focus on what we can control,” Poilievre said. “We must unblock our energy and minerals, unleash our economy, and bolster our military and self-reliance for leverage to fight for tariff-free trade with the U.S.”

While Friday’s ruling deprives Trump of his favourite tariff tool — and eliminates some of the uncertainty caused by his erratic and unpredictable trade threats — the president has other ways to implement wide-ranging duties.

Canadian Chamber of Commerce president and CEO Candace Laing said it’s “not the last chapter of this never-ending story.”

“Canada should prepare for new, blunter mechanisms to be used to reassert trade pressure, potentially with broader and more disruptive effects,” Laing said in a media statement.

This report by The Canadian Press was first published Feb. 20, 2026.

— With files from The Associated Press

Kelly Geraldine Malone, The Canadian Press