In a major legal setback, on Friday, February 20, 2026, the Supreme Court of the United States has ruled against former President Donald Trump’s sweeping global tariff policy, declaring that the executive action went beyond the authority granted under federal trade laws.
The decision follows months of legal arguments over whether the former president had the power to impose broad tariffs on imports without direct approval from Congress. The Court found that while the executive branch holds certain powers during national emergencies, the scale and structure of the global tariffs introduced under Trump exceeded those limits.
The tariffs, which targeted a wide range of goods from multiple countries, were initially defended as necessary to protect American industries and reduce trade imbalances. Supporters argued that the measures strengthened domestic manufacturing and put pressure on foreign competitors. However, critics said the policy increased costs for American businesses and consumers, disrupted global supply chains, and strained diplomatic relationships.
In its ruling, the Court emphasized the importance of maintaining constitutional balance between the executive and legislative branches, especially on matters involving taxation and trade regulation. Legal analysts say the judgment could redefine how future administrations approach trade enforcement and emergency economic powers.
The ruling is expected to have significant economic and political implications, particularly as the United States navigates ongoing global trade tensions. Businesses that were affected by the tariffs may now see relief, while policymakers debate the next steps in shaping America’s trade strategy.
The decision marks another chapter in the ongoing legal and political battles surrounding Trump’s economic legacy, reinforcing the judiciary’s role in checking executive authority.
