Supreme Court Strikes Down Trump's Tariffs in Major Setback

Feb 23, 2026, 2:37 AM

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In a significant ruling, the US Supreme Court has struck down most of President Donald Trump's tariffs, deeming them unconstitutional. The court's decision, delivered in a 6-3 vote, found that Trump exceeded his authority under the International Emergency Economic Powers Act (IEEPA), a law he cited to justify the imposition of tariffs on imported goods from numerous countries.

Chief Justice John Roberts, authoring the majority opinion, stated that the president does not possess the unilateral authority to impose tariffs during peacetime without clear congressional authorization. This ruling represents a critical blow to Trump's economic policies, which have relied heavily on tariffs as a tool for both economic and foreign policy since he began his second term in January 2025.

Trump's tariffs have been a source of contention, affecting various sectors, particularly in states like California, and have contributed to economic uncertainty both domestically and globally. The court's decision could potentially lead to refunds for billions of dollars collected from importers who paid these tariffs, although the manner of processing these refunds remains uncertain. Justice Brett Kavanaugh, in his dissent, noted the implications of the ruling, indicating it could create significant practical challenges for the US Treasury.

During a press conference following the ruling, Trump criticized the justices who sided against him, labeling their decision as a "disgrace" and implying they were influenced by foreign interests. Despite the setback, Trump asserted that he would impose a global 10% tariff using other legal authorities, specifically citing Section 122 of the Trade Act of 1974, which provides limited tariff powers.

The Supreme Court's ruling not only invalidates many of Trump's tariffs but also emphasizes the constitutional separation of powers, asserting that the authority to impose taxes, including tariffs, resides solely with Congress. The decision comes amid ongoing debates about the impact of Trump's tariff policies, which have led to fluctuating trade activities and have been a factor in persistent inflation.

The ruling has raised questions about the future of US trade policy. Experts suggest that while Trump may continue to leverage other statutes to impose tariffs, these alternatives may require more extensive justification and could face greater scrutiny from Congress. The decision underscores the limitations of presidential power in economic matters, especially those with widespread implications for the economy.

As businesses and lawmakers react to the Supreme Court's ruling, Trump’s administration is expected to face challenges in navigating the complexities of tariff implementation without the broad authority previously granted under IEEPA. The ruling is likely to reshape the landscape of US trade policy and influence how tariffs are used by future administrations.

Overall, the Supreme Court's decision marks a pivotal moment in the ongoing legal and political battles over presidential authority and economic policy, reflecting the delicate balance of power between the executive and legislative branches.

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