Landmark Ruling: Learning Resources Inc. v. Donald J. Trump
The case Learning Resources Inc. v. Donald J. Trump resulted in a landmark 170-page ruling on February 20, 2026, where the US District Court for the District of Columbia declared tariffs imposed by President Donald Trump unconstitutional with a 6:3 majority.
Background
- Learning Resources Inc., a small Illinois business importing educational toys from China, filed a suit against the tariffs.
- Other small businesses and 12 states filed similar suits in the United States Court of International Trade (CIT).
Legal Framework
- The International Emergency Economic Powers Act (IEEPA) of 1997 gave the President power during a national emergency, declared under the National Emergency Act.
- President Trump declared a national emergency for illegal drug influx and trade deficits, leading to tariffs on imports.
Tariff Imposition
- Initial 10% duty on all imports, with higher and varied tariffs on specific countries like China (up to 125%).
- The central question was whether the term "regulate" in sections 1701 and 1702 included imposing tariffs.
Court Ruling
- Chief Justice John Roberts and five judges ruled that the President cannot impose tariffs without Congress's authority.
- Article I, section 8 of the US Constitution grants Congress the power to lay and collect taxes.
Major Questions Doctrine
- The doctrine requires clear Congressional authorization for the executive to address significant economic or political issues.
Economic and Political Consequences
- The government highlighted potential $4 trillion deficit reduction and $15 trillion international agreements.
- The majority dismissed these economic concerns without clear Congressional authorization.
Dissenting Opinion
- The dissent, led by Justice Brett Kavanaugh, argued for broader regulatory powers during emergencies.
- Reference to previous tariffs by past presidents like Nixon and Ford, and statutes enabling tariffs.
Impact and Conclusion
- The ruling emphasized that tariffs are taxes, requiring express Congressional authority.
- The importance of adhering to constitutional limitations and the separation of powers was highlighted.
