Panda Traders

Here’s everything you need to know.
👉What the Court actually did (Feb 20, 2026)
The Court struck down Trump’s sweeping tariffs imposed under the 1977 IEEPA emergency powers law, saying IEEPA does not authorize the president to impose tariffs.
Decision was 6–3. John Roberts wrote the majority opinion.
Two conservatives joined the liberals in the majority: Neil Gorsuch and Amy Coney Barrett. The dissent was Brett Kavanaugh joined by Clarence Thomas and Samuel Alito.
Why it matters
The Court framed this as a core separation-of-powers problem: tariffs/taxes are Congress’s lane, and the president needs clear authorization for “extraordinary” claims of power.
What happens next
💣refunds could be enormous
Economists at the Penn-Wharton Budget Model estimate tariff collections at stake are $175B+, up to about $179B since the IEEPA tariffs began (Feb 2025).
💣refunds won’t be automatic or fast
The Supreme Court didn’t lay out a refund mechanism. That fight goes back through the trade courts.
Reuters reports 1,000+ lawsuits already filed seeking refunds, with more expected—this can drag out.
💣The White House can pivot to other tariff tools
The administration has signaled it will pursue other legal authorities (national-security tariffs, and retaliatory tariffs after trade investigations), but those routes are slower/more constrained than the “instant” IEEPA approach. �

💣One commonly-cited backup: Section 122-style temporary tariffs that can reach 15% for 150 days (not the same unlimited “blanket” power).

🐼Market impact (near-term)
On the ruling day, Reuters reported U.S. stock indexes jumped and the dollar weakened as markets reacted to lower tariff risk (at least temporarily).
Yale Budget Lab estimates the effective tariff rate could fall sharply (example cited: ~17% → ~9.1%) if replacements don’t land quickly.

🐼Consumer impact
Tax Policy Center estimated that if the IEEPA tariffs disappear and aren’t replaced, the average family’s 2026 burden could drop by about $1,200.
💣Tax Policy Center
Federal Reserve Bank of New York research found nearly 90% of the 2025 tariff burden fell on U.S. firms and consumers (not “foreign countries paying.
💣Liberty Street Economics
💣Don’t ignore the customs-bond angle
Higher tariffs drove bigger customs bonds and collateral demands; insurers/sureties have been benefiting from the surge -refund uncertainty could get messy here too.
💣Insurance Business
Now let's conclude our whole discussion
The IEEPA tariffs are legally dead. But the trade war isn’t over-expect fast attempts to repackage tariffs under other authorities, with more process, more limits, and more uncertainty.
I’m watching for the next executive/trade action and I’ll post updates as they hit.
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