The Supreme Court ruling striking down President Donald Trump’s emergency tariffs represents a major setback for the administration’s economic and trade agenda.
In a 6–3 decision, the court ruled that the International Emergency Economic Powers Act does not authorize presidents to impose broad tariffs, reaffirming that tariff authority rests with Congress.
Chief Justice John Roberts warned that upholding Trump’s actions would have dramatically expanded presidential power.
What Trump's tariff loss means for his agenda https://t.co/dqvxS7VqKq
— Axios (@axios) February 20, 2026
The ruling removes a central tool Trump used to pressure trading partners and threaten economic retaliation.
Analysts estimate more than 60 percent of 2025-era tariffs are effectively erased. The Yale Budget Lab said the effective tariff rate could drop to just over 9 percent.
The decision creates uncertainty over refunds already collected and complicates existing trade agreements. The administration may pursue alternative trade authorities, though those processes are slower and more restrictive.
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