US Supreme Court Strikes Down Trump Tariffs

CA Attorney General Press Releases

Filed February 20th, 2026

Detected February 20th, 2026

Summary

The U.S. Supreme Court has ruled President Trump's imposition of tariffs under the International Emergency Economic Powers Act (IEEPA) illegal. California Attorney General Rob Bonta celebrated the decision, which is expected to restore order to markets and potentially lead to the return of funds to harmed parties. The tariffs were projected to cost California's economy $25 billion and over 64,000 jobs.

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What changed

The U.S. Supreme Court has declared President Trump's tariffs, imposed under the International Emergency Economic Powers Act (IEEPA), illegal. This ruling, celebrated by California Attorney General Rob Bonta and supported by various states and businesses, ends a tariff regime that caused significant disruption to families, businesses, and global economies. The decision is expected to restore order to markets and potentially pave the way for the return of funds to those harmed by the tariffs. The tariffs were projected to cost California's economy $25 billion and result in the loss of over 64,000 jobs.

This ruling has immediate implications for businesses involved in international trade, particularly those that were subject to these tariffs. While the ruling itself removes the illegal tariff regime, entities that paid these tariffs may be eligible for refunds or other forms of restitution, depending on the specific legal mechanisms and court orders that follow. Companies should review their past tariff payments and consult with legal counsel to understand their rights and potential claims. The Attorney General's office has been actively involved in challenging these tariffs through various legal avenues, including amicus briefs and direct lawsuits.

Source document (simplified)

Attorney General Bonta Celebrates Win for Families, Businesses Across America: U.S. Supreme Court Strikes Down Trump’s Illegal Tariffs

Press Release
Attorney General Bonta Celebrates Win for Families, Business… Friday, February 20, 2026 Contact: (916) 210-6000, agpressoffice@doj.ca.gov Decision restores order to California's economy and global markets, paves way for returning money to people harmed

OAKLAND — California Attorney General Rob Bonta today issued the following statement in response to the U.S. Supreme Court holding that President Trump’s imposition of tariffs under the International Emergency Economic Powers Act (IEEPA) is illegal. Today's decision ends the President’s unlawful and chaotic tariff regime, which wreaked havoc on families and businesses nationwide.

“The Trump Administration’s illegal and chaotic tariff regime has come to an end. Today, the highest court in the country has agreed with arguments put forth by California, our sister states, and the dedicated businesses that decided to fight for their livelihoods and for what was right,” said Attorney General Bonta. “While this is great news, we must not forget the chaos that sent businesses, consumers, and global economies reeling. At a time when more and more families are struggling with affordability and having trouble paying for the basics — their utilities, groceries, gas — this Administration seems intent on making it more expensive for Californians and Americans to live. California celebrates today’s tremendous win and remains committed to tackling Donald Trump’s agenda to fuel the unaffordability crisis.”

Background:

States across the nation have rallied against the President’s unlawful tariffs, which have made the affordability crisis worse for millions of Americans. The President’s destructive and unpredictable tariff regime has sent shockwaves through financial markets, businesses, and consumers in every corner of the globe — including in California, home to the fourth-largest economy in the world and the country’s largest importer and second-largest exporter among the 50 states. The Administration’s tariffs imposed under IEEPA were projected to cost California’s economy $25 billion and result in the loss of over 64,000 jobs.

Attorney General Bonta has worked to challenge the President’s illegal tariffs on all fronts.

Last year, Attorney General Bonta and Governor Newsom filed a lawsuit challenging President Trump’s unlawful use of power to impose tariffs without the consent of Congress. Attorney General Bonta has filed an amicus brief in the Court of International Trade in Oregon v. Trump as well as in the D.C. Circuit in Learning Resources, Inc. v. Trump, cases challenging President Trump’s illegal imposition of tariffs, and filed an amicus brief in the U.S. Supreme Court in Learning Resources Inc. v. Trump.

In addition, he has hosted roundtable discussions in San Francisco and Los Angeles with business leaders on the front lines of the tariff war to discuss the impacts of tariffs on industries across California.