Supreme Court Strikes Down Most of Trump's Tariffs, Bringing Relief to Vermont Businesses

Ruling affirms Congress's power over tariffs and taxation, leaving questions about refunds for impacted companies

Published on Feb. 21, 2026

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The U.S. Supreme Court ruled 6-3 on Friday to strike down most of the tariffs imposed by former President Trump, siding with businesses that sued and argued the tariffs were unconstitutional. The ruling does not affect sector-specific tariffs on products like steel and aluminum. Vermont businesses that were impacted by the sweeping tariffs, including Terry Precision Cycling and Rigorous Technology, welcomed the decision, saying it will bring more clarity and predictability to their operations. However, the ruling leaves open questions about how businesses might be refunded for the tariffs already collected.

Why it matters

The Supreme Court's decision affirms that the president does not have unilateral authority to impose broad tariffs, and that Congress holds the power over tariffs and taxation. This is a significant check on executive power and a victory for the businesses that sued, many of which are small and medium-sized companies that were negatively impacted by the tariffs. The ruling could also help improve trade relations between Vermont and its largest trading partner, Canada, which was targeted by the tariffs.

The details

The Supreme Court ruled that Trump's use of the International Emergency Economic Powers Act and the Trade Expansion Act of 1962 to impose the tariffs was unconstitutional, as those laws did not grant the president the authority to enact such sweeping tariffs. Businesses that sued, including Burlington-based Terry Precision Cycling, argued the tariffs were illegal and are now demanding refunds, though it's unclear if that will be possible. Rigorous Technology, an industrial engineering firm in Williston, said the tariffs adversely impacted its customers, many of whom are U.S. manufacturers that rely on overseas equipment.

  • The Supreme Court ruling was issued on Friday, February 20, 2026.
  • President Trump announced the tariffs in April 2025, calling it 'liberation day.'

The players

Terry Precision Cycling

A Burlington-based small business that was one of the plaintiffs in the lawsuit challenging the tariffs.

Rigorous Technology

An industrial engineering company based in Williston, Vermont that was not directly impacted by the tariffs but said its customers were.

Jared Carter

A professor at Vermont Law School who explained that the Supreme Court ruling affirms Congress's power over tariffs and taxation, rather than the president's.

Lindsay Kurrle

The Vermont Secretary of Commerce and Community Development, who said the ruling highlights the impact the tariffs had on some businesses in the state.

Peter Welch

A Vermont senator who heard from Vermont companies about the difficulties of dealing with constantly changing import fees due to the tariffs.

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What they’re saying

“Today's ruling is welcome news for American small businesses like mine. The court system has been unanimous: these draconian, across-the-board tariff taxes have no legal or constitutional basis.”

— Nik Holm, CEO, Terry Precision Cycling (WCAX)

“A lot of our customers are manufacturers here in the United States, but all of their equipment is made overseas. It's a hard way to navigate when things might be different in a month or the price of something is completely unknown by the time it arrives in your facility.”

— Diane Abruzzini, Rigorous Technology (WCAX)

“When you see a small manufacturer out of Vermont willing to engage in litigation– which we know can be very costly– it really highlights how this adversely impacted some businesses.”

— Lindsay Kurrle, Vermont Secretary of Commerce and Community Development (WCAX)

“I think strong policy is necessary to reshore manufacturing, but doing so with Congress, and in a way that allows business owners to plan, will be a benefit to everyone.”

— Diane Abruzzini, Rigorous Technology (WCAX)

“The big question I have is what happens to that hundreds of billions of dollars now that was illegally now obtained through these tariffs? It seems highly likely that there's going to need to be some sort of mechanism for refunds to the companies that were subject to these tariffs illegally.”

— Jared Carter, Professor, Vermont Law School (WCAX)

What’s next

The Supreme Court's ruling did not address how businesses might be refunded for the tariffs already collected, leaving open questions about the logistics and economic impacts of that process.

The takeaway

The Supreme Court's decision is a significant check on presidential power, affirming that Congress holds the authority over tariffs and taxation. While it brings relief to Vermont businesses that were negatively impacted by the sweeping tariffs, the ruling also raises new questions about how to handle the billions of dollars collected through what the court deemed unconstitutional measures.