Supreme Court Rules Trump's Broad Tariffs Illegal

Feb 20, 2026

68 min

Feb 20, 2026 19:31

Why the Supreme Court ruled Trump’s sweeping tariffs illegal: Key points explained

## Supreme Court Decision

The U.S. Supreme Court has ruled that former President Donald Trump exceeded his authority by imposing extensive tariffs on international trade partners. The decision, made by a 6-3 majority, found that the International Emergency Economic Powers Act (IEEPA) does not grant the president the power to impose such tariffs.

## Impact on Tariffs

The ruling effectively ends the broad tariffs Trump had placed on nearly all U.S. trading partners, including those targeting Mexico, Canada, and China. However, sector-specific tariffs, such as those on steel and aluminum, remain unaffected.

## Global Reactions

The European Union is analyzing the ruling's implications, while Canada has welcomed the decision, calling the tariffs "unjustified." The UK plans to coordinate with the U.S. to understand the ruling's impact on their trade relations.

## Economic and Market Response

Following the ruling, U.S. stocks saw a rise, although concerns about economic growth and inflation persist. The U.S. economy's growth rate was lower than expected, and inflation rates were higher, which may limit the Federal Reserve's options for interest rate cuts.

## Political and Economic Context

Despite the ruling, Trump continues to view tariffs as a negotiation tool. The tariffs have not significantly boosted U.S. manufacturing, with job losses reported in the sector. The decision may lead to a reduction in average tariffs and a potential decrease in government revenue.

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