Spring 2026 Supreme Court rulings reshape agency power and trade law
The Supreme Court ruled on executive power, regulatory agency leadership, and data privacy enforcement.
Why it matters: These decisions affect how businesses and regulators manage compliance risks and legal strategies amid evolving agency authority and trade restrictions.
- In Trump v. Slaughter, the Court ruled the FTC's for-cause removal protection unconstitutional, allowing presidential dismissal without cause.
- Learning Resources, Inc. v. Trump held that the President lacks authority under IEEPA to impose tariffs, limiting executive trade powers.
- The Court upheld the FCC's enforcement of data privacy rules, affirming $100 million penalties on Verizon and AT&T.
- These rulings redefine agency leadership balance and clarify executive limits in trade and data privacy regulations.
The Supreme Court's Spring 2026 term significantly altered the landscape of federal agency power and executive authority. In Trump v. Slaughter, the Court found that the Federal Trade Commission's (FTC) for-cause removal provision violates constitutional separation of powers. This decision empowers the President to remove FTC commissioners without cause, overturning a near-century-old precedent that insulated independent agency leaders from political influence.
Separately, in Learning Resources, Inc. v. Trump, the Court reaffirmed that the International Emergency Economic Powers Act (IEEPA) does not authorize the President to impose tariffs. The ruling directly invalidated tariffs of 25% on Canadian and Mexican imports and 10% on Chinese imports imposed by the President, underscoring that tariff authority rests with Congress. Chief Justice John Roberts emphasized the limitation on executive power, stating, "The President asserts the extraordinary power to unilaterally impose tariffs of unlimited amount, duration, and scope."
On regulatory enforcement, the Court upheld the Federal Communications Commission’s (FCC) authority to impose data privacy regulations on telecom companies. This affirmed hefty penalties totaling $100 million against Verizon and AT&T for failing to adequately protect customer location data, as reported by AP News.
These rulings collectively reshape the relationship between the executive branch, federal agencies, and regulated entities. Beveridge & Diamond noted that the Court’s decisions on separation of powers and agency enforcement have "significant implications for businesses, determining leadership of key agencies and defining the limits of agency enforcement powers." Legal teams advising corporations should closely monitor these developments for shifts in compliance obligations, regulatory risk, and litigation strategies.
By the numbers:
- 25% and 10% tariffs struck down — on Canadian/Mexican and Chinese imports under IEEPA respectively
- $100 million — FCC penalties upheld against Verizon and AT&T for data privacy breaches
- Nearly 100 years — precedent overturned regarding FTC commissioner removal
Yes, but: The Court’s rulings leave open questions about how agencies will adapt their enforcement strategies and whether Congress will introduce legislative changes to clarify or counteract these decisions.
What's next: Agencies affected by these rulings will need to revise policies and enforcement frameworks; lawmakers may consider legislative responses to rebalance agency and executive authority.