Supreme Court strikes down Trump's sweeping tariffs

The United States Supreme Court in Washington delivered a significant blow to President Donald Trump’s economic agenda on Friday, February 20, 2026, by striking down his far-reaching global tariffs in a decisive 6-3 ruling. The decision invalidates the sweeping "reciprocal" tariffs and other duties imposed under a 1977 emergency powers law, which the administration had utilized to target nearly every country in an effort to address trade deficits and drug trafficking. The justices determined that the president exceeded his constitutional authority, upholding the principle that the power to levy taxes resides with Congress, not the executive branch. This landmark case represents the first major component of Trump’s policy agenda to face definitive judgment by a Supreme Court that includes three justices he appointed during his first term. While the president had previously secured victories on the emergency docket regarding federal staffing and funding cuts, this legal challenge drew opposition from a wide political spectrum, including libertarian and pro-business groups typically aligned with the Republican Party. The challengers, comprising a dozen largely Democratic-leaning states and various small businesses ranging from plumbing suppliers to toy manufacturers, argued that the emergency statute does not explicitly authorize tariff imposition and failed the same legal scrutiny that doomed President Joe Biden's student loan forgiveness program. The economic ramifications of the ruling are substantial, as the Congressional Budget Office estimated the tariffs would cost approximately $3 trillion over the next decade. Federal data indicates the Treasury had already collected more than $133 billion from these import taxes since they were implemented in April 2025 and earlier that year. With the legal authority for these specific levies removed, major corporations like Costco and numerous small businesses are now positioned to demand refunds for the taxes they paid. Although the administration has indicated it will attempt to maintain a tariff framework using other statutory authorities, the decision curtails the speed and severity of presidential action on trade, reinforcing the separation of powers in economic policy.