The Supreme Court ruled Friday that President Donald Trump violated federal law by imposing sweeping global tariffs under emergency powers, dealing a major setback to a key pillar of his economic agenda.
The court found that the White House exceeded its legal authority by acting without congressional approval. The ruling immediately affected financial markets, with the Dow Jones Industrial Average rising more than 200 points as investors reacted to the decision.
Supreme Court rules that Trump's sweeping emergency tariffs are illegal.https://t.co/D4cEdbZsCH pic.twitter.com/vPD8OGa99V
— CNN (@CNN) February 20, 2026
The market response also came amid signs of slowing economic growth. Government data showed U.S. gross domestic product grew at a weak 1.4% annual rate in the fourth quarter, well below expectations. Inflation remained elevated, with the core personal consumption expenditures index holding at 3% in December.
The decision limits the president’s ability to impose broad tariffs without explicit authorization from Congress.
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TIPP Staff
