The Trump Administration Tariffs Are Not Gone After The Learning Resources Ruling, They Are Different — And Transportation Industry Players Must Adapt

On February 20, 2026, the United States Supreme Court issued a major constitutional decision in Learning Resources, Inc. v. Trump (consolidated with Trump v. V.O.S. Selections), No. 24-1287 (U.S. February 20, 2026) ruling on the legality of tariffs President Donald Trump imposed under the International Emergency Economic Powers Act (IEEPA).

In a 6–3 opinion, the Court held that IEEPA does not authorize the President to impose tariffs. The majority opinion, authored by Chief Justice John Roberts, emphasized that the Constitution entrusts the power to “lay and collect taxes, duties, imposts and excises” exclusively to Congress, and that IEEPA's language does not clearly delegate tariff authority to the executive branch. As we have seen in the days since the ruling, however, this does not mean the President is without other recourse to impose tariffs, but only that he can't do so under this Act without approval of the United States Congress.

This decision marked a rare Supreme Court rebuke of a major executive economic policy, affirming congressional primacy over taxation and trade and sparking nationwide legal, economic, and political reactions. However, the Trump Administration almost immediately announced a broad 10 percent tariff on all imports from all countries, which was once again increased within a day to 15 percent. Under U.S. law, Section 122 of the U.S. Trade Act of 1974 empowers the president to impose tariffs of up to 15 percent to address “large and serious balance-of-payments deficits.” Tariffs can be imposed under this law only for 150 days, unless the U.S. Congress agrees to extend it. Trump is the first President to utilize this law in order to impose tariffs. What is unknown is what the administration plans to do at the expiration of the 150-day period, and how many legal challenges will be made since it applies to all countries – even those which do not have a “large and serious balance-of-payments deficit.”

Potentially, long-term and even higher imposed tariff options are also available under Section 301 of the U.S. Trade Act of 1974 after the 150-day period allowed under Section 122 expires. Section 301, codified at 19 U.S.C. § 2411 allows an “investigation” which could then provide for the U.S. Trade Representative to seek retaliatory tariffs against countries with unfair trade practices or rates.

Likewise, the existing tariffs on steel, aluminum, automotives and lumber are not affected by this new Learning ruling, as those were imposed under a different Act, Section 232 of the Trade Expansion Act of 1962.

So what does this mean for trucking companies and those involved in the commercial transportation arena? The continued imposition of tariffs, no matter the percentage, will affect trucking companies in numerous ways:

• As we have seen previously, the tariffs have caused, and could continue to cause, a significant reduction in cross-border freight. 
   
• Although with prior tariffs (now ruled unconstitutional by the Supreme Court), we saw a short term surge in imports due to front-loading – or trying to increase imports prior to implementation – the administration wants these new 15 percent tariffs to take place “immediately,” causing volatility and implementation issues.
   
• There will undoubtedly be higher equipment and parts prices for all manufactured goods.
   
• Transportation Insurance rates will likely rise to account for the rising cargo values.
   
• There will likely be additional delays for cross-border shipments as inspections and documentation face increased scrutiny.
   
• There may be an increase in rate confirmation disputes as uncertain costs fluctuate.
   

For trucking companies, this means actions should be taken quickly to mitigate the effects on business. Companies should take a hard look at contracts and re-examine any language regarding tariff allocation. They should also open frequent and consistent lines of communication with customers regarding any anticipated pricing adjustments. Transportation brokers, freight forwarders and shippers should coordinate with customs brokers to ensure that tariffs are being properly accounted for, and that all necessary paperwork is completed properly for all cross-border shipments.

Unfortunately, this ruling has not eliminated the tariff question but rather has transformed it. In the short term, we can expect to see upheaval in the markets. Companies that proactively engage in addressing potential risks will be better prepared to weather the storm. Consistent monitoring of contractual, regulatory, and operational changes is key.

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