Supreme Court strikes down Trump's global tariffs in major setback for president - here's what it means

On February 20, 2026, the Supreme Court issued a significant ruling against President Donald Trump's tariff policies, striking down most of the tariffs he had imposed.

Per NBC News, the decision, which was delivered in a 6-3 ruling, found that Trump overstepped his authority by using a national emergency law to enforce sweeping tariffs. This ruling represents a rare defeat for the Trump administration, especially considering the Court's conservative majority.

The tariffs in question were largely implemented using the International Emergency Economic Powers Act (IEEPA) of 1977, a law that allows presidents to regulate imports during national emergencies.

The Court, however, concluded that the law did not grant the president the authority to impose such tariffs. Chief Justice John Roberts, who authored the majority opinion, stated that the Trump administration "points to no statute" allowing tariffs to be imposed under the IEEPA.

The impact of the decision on Trump's tariffs

While the Supreme Court's ruling does not invalidate all of Trump's tariffs, it significantly affects certain categories. The tariffs on steel and aluminum, imposed under different legal frameworks, remain in place.

However, the Court’s decision invalidates two major groups of tariffs: the "reciprocal" tariffs targeting specific countries like China, which can reach as high as 34%, and the 25% tariff imposed on goods from Canada, China, and Mexico, which Trump justified as a measure against fentanyl trafficking.

The ruling also opens the door for companies affected by these tariffs to seek refunds from the U.S. Treasury Department. Many businesses, including V.O.S. Selections Inc. and Plastic Services and Products, had already sued, claiming the tariffs harmed their operations.

In his dissent, Justice Kavanaugh warned of the financial implications of the ruling, noting that billions of dollars could need to be refunded to affected businesses.

Looking ahead: Trump’s next steps

The ruling does not prevent Trump from reimposing tariffs using other legal methods. However, the decision sets a significant legal precedent by reinforcing the Constitution’s assignment of tariff-setting authority to Congress.

Trump's tariffs had raised billions of dollars in revenue, but this Supreme Court decision limits his ability to use emergency powers to impose such taxes without explicit Congressional approval.

For now, businesses and lawmakers alike will be closely watching how this decision reshapes the landscape of U.S. trade policy moving forward.

Featured image credit: Anna Moneymaker / Getty