On February 20, 2026, the US Supreme Court, by a 6 to 3 vote, ruled unlawful the bulk of the tariffs that Donald Trump’s administration had imposed under the 1977 International Emergency Economic Powers Act. The court said the president could not unilaterally reshape global trade rules, bypass Congress, and invoke national security and anti-drug arguments to do so.
Trump had relied on that law in 2025, first to target China, Mexico, and Canada, and then on April 2 to declare a national emergency and impose tariffs on imports from 185 countries and territories. The baseline rate for Ukraine was 10%, for China 34%, for the European Union 20%, for India 26%, and for the United Kingdom 10%. Russia, Cuba, Belarus, and North Korea were not covered.
The ruling dealt a blow not only to the White House’s economic strategy but also to Republicans: Democrats hailed the decision as a win for consumers, while a visible split emerged among Trump’s allies and within his own party. Trump himself called the ruling a “disgrace” and criticized the court, including conservative justices he had appointed.
Still, Trump did not retreat from his tariff policy. Just hours after the ruling, he announced a 10% global tariff, this time citing Section 122 of the Trade Act of 1974. That provision allows a temporary import surcharge of up to 15% in the event of a serious balance-of-payments deficit, but only for a limited period: after 150 days, congressional approval is required.
The White House also said it would begin procedures under Section 301 and other trade investigations. In addition, the administration still has Section 232, which allows import restrictions on national security grounds. Experts say these tools give Trump room to partially repackage his tariff campaign, although doing so will take time and likely trigger fresh legal disputes.
A separate issue concerns money already collected. According to researchers at the University of Pennsylvania, importers could potentially seek refunds of more than $175 billion. But the administration immediately signaled it does not intend to return the funds. Economists also note that, contrary to Trump’s claims, American companies and consumers bore most of the tariff burden, while the Tax Foundation estimated the average hit to a household in 2025 at about $1,000.