In a significant 6-3 decision on February 20, 2026, the U.S. Supreme Court struck down the administration’s broad use of the International Emergency Economic Powers Act (IEEPA) to impose sweeping tariffs. This ruling has immediate and profound implications for our business community here in Southeast Missouri.
The Court ruled that while the President has broad emergency powers, the authority to "tax and tariff" remains a power held exclusively by Congress. By invalidating the IEEPA-based tariffs—which included the 10% global "reciprocal" baseline and specific levies on partners like Canada and Mexico—the Court has effectively halted billions of dollars in planned collections.
For our regional manufacturers and retailers, this ruling may offer a reprieve from rising input costs. A projected 0.6% to 1.2% inflationary spike linked to these tariffs may now be mitigated, helping to stabilize the cost of goods for our local consumers.
While IEEPA tariffs are gone, "Section 232" tariffs on steel and aluminum remain in place. Additionally, the administration may pivot to more temporary measures, such as Section 122 (limited to 15% for 150 days).
From a long-term business sense, advocating for a stable and predictable trade environment is an important part of the dialog we have with our elected officials in Washington. For business, it is important to continue to monitor how the process develops and watch for any opportunities to potentially leverage refunds for tariffs previously assessed.
