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Trump's global tariffs ruled unlawful by US Supreme Court
The ruling is expected to impact global trade

Trump's global tariffs ruled unlawful by US Supreme Court

Feb 20, 2026
08:57 pm

What's the story

The US Supreme Court has struck down President Donald Trump's global tariffs imposed under a national emergency law. The 6-3 decision, authored by Chief Justice John Roberts, found that Trump exceeded his authority by using the International Emergency Economic Powers Act (IEEPA) to impose broad import taxes. The ruling is expected to have major implications for global trade and presidential power.

Law interpretation

Ruling could lead to refunds in tariffs

The IEEPA, enacted in 1977, allows a president to regulate commerce during a national emergency but does not explicitly mention tariffs. The ruling could pave the way for potential refunds amounting to hundreds of billions of dollars in tariffs. This would be a major victory for small businesses and states that had challenged Trump's measures.

Legal defense

Implications for global trade and presidential power

The Trump administration had defended the tariffs as being justified under a law that empowers the president to respond to national emergencies. However, the Supreme Court disagreed with this interpretation, stating that the law did not authorize such sweeping tariffs. The ruling is likely to reshape global trade dynamics and redefine presidential power in times of national emergency.

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