U.S. Supreme Court slams brakes on Donald Trump’s tariff blitz

February 21, 2026 (MLN): In a decision with sweeping consequences for global trade, the U.S. Supreme Court has struck down  President Donald Trump’s broad tariffs imposed under emergency powers, ruling that he exceeded his legal authority, Reuters reported.

The 6–3 ruling, authored by Chief Justice John Roberts, determined that the International Emergency Economic Powers Act (IEEPA) does not grant the president the authority to impose tariffs, according to Reuters.

“Our task today is to decide only whether the power to regulate importation… embraces the power to impose tariffs. It does not,” Roberts wrote, as cited by Reuters.

The decision marks the most significant judicial setback for Trump since returning to office in January 2025, Reuters noted.

Although the court has a conservative majority, the ruling united Roberts with fellow conservatives Neil Gorsuch and Amy Coney Barrett, alongside liberal justices Sonia Sotomayor, Elena Kagan, and Ketanji Brown Jackson.

In dissent, Justices Brett Kavanaugh, Clarence Thomas, and Samuel Alito said the ruling may not prevent Trump from imposing similar tariffs under other laws, it reported.

Kavanaugh wrote that the president may have relied on the wrong statute rather than lacking authority altogether.

Speaking at the White House, Trump condemned the ruling as “terrible” and “totally defective,” saying he has “other alternatives” to pursue tariffs, according to Reuters.

He also announced plans for a 10% global tariff under different legal authority.

Trump has long used tariffs as a key economic and foreign policy tool, arguing they are vital for U.S. economic security.

The tariffs were central to a broader trade conflict that strained alliances, unsettled markets, and heightened global economic uncertainty.

Business groups welcomed the decision but warned it could create new uncertainty if the administration moves to impose tariffs through other mechanisms.

The ruling did not address whether previously collected tariffs, estimated at more than $175 billion, must be refunded, a process that could take years to resolve.

Financial markets reacted with volatility as investors weighed potential relief from inflation against uncertainty over future trade actions.

The court emphasized that actions of major economic significance require clear congressional authorization, invoking the “major questions” doctrine that limits executive authority.

Roberts warned that accepting Trump’s interpretation would allow “unchecked presidential policymaking” on trade, replacing long-standing cooperation between Congress and the executive branch.

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