U.S. Supreme Court Strikes Down Trump's Global Tariffs in Landmark 6-3 Ruling

February 21, 2026

In a major setback to President Donald Trump's trade agenda, the U.S. Supreme Court today ruled 6-3 that the broad "global tariffs" imposed on imports from nearly every country under Section 232 of the Trade Expansion Act of 1962 and the International Emergency Economic Powers Act (IEEPA) are unconstitutional. The decision invalidates tariffs ranging from 10% to 60% that had been applied to steel, aluminum, automobiles, semiconductors, consumer electronics, pharmaceuticals, and thousands of other product categories since early 2025.

Writing for the majority, Justice Brett Kavanaugh held that the President's authority to impose tariffs for "national security" or "economic emergency" does not extend to blanket duties on virtually all trading partners without specific, evidence-based justification tied to a clearly defined threat. The Court found that the administration's reliance on broad proclamations of "economic vulnerability" and "supply-chain risks" exceeded statutory limits and violated the non-delegation doctrine by giving the executive virtually unlimited power to tax imports.

Chief Justice John Roberts and Justices Clarence Thomas, Samuel Alito, Neil Gorsuch, Amy Coney Barrett, and Kavanaugh formed the majority. Justices Sonia Sotomayor, Elena Kagan, and Ketanji Brown Jackson dissented, arguing that the Court overstepped by second-guessing executive judgments on national security and economic threats.

The ruling immediately nullifies tariffs currently affecting more than $1.2 trillion in annual imports. U.S. Customs and Border Protection has been directed to cease collection and begin processing refunds for duties paid since January 2025. The decision does not affect targeted sanctions on specific countries (e.g., Russia, Iran, North Korea) or existing anti-dumping and countervailing duties.

Immediate Market and Economic Impact

U.S. stock indexes surged in pre-market trading: the Dow Jones Industrial Average rose 2.4%, the S&P 500 gained 2.1%, and the Nasdaq Composite jumped 2.8%. Shares of major importers, retailers (Walmart, Target, Amazon), automakers (Ford, GM, Tesla), and semiconductor firms (Nvidia, Intel, AMD) posted sharp gains. The U.S. dollar weakened against major currencies as the tariff overhang was removed.

The National Retail Federation and U.S. Chamber of Commerce praised the ruling as "a victory for American consumers and businesses." The American Iron and Steel Institute and United Steelworkers expressed disappointment, warning of renewed import surges.

White House and Political Response

President Trump condemned the decision as "a terrible ruling by activist judges" and promised to "use every lawful tool remaining to protect American workers and industries." Administration officials indicated they are studying whether to pursue narrower, industry-specific tariffs under existing trade laws or seek new legislation from Congress.

Senate Majority Leader John Thune (R-SD) and House Speaker Mike Johnson (R-LA) issued a joint statement vowing to "work quickly" on legislation restoring presidential tariff authority, though passage is far from certain in a narrowly divided Congress. Democratic leaders, including Senate Minority Leader Chuck Schumer and House Minority Leader Hakeem Jeffries, called the ruling "a win for American families who have borne the cost of unnecessary tariffs."

Background and Legal Path

The case, originally brought by a coalition of retailers, manufacturers, and trade associations (Retail Industry Leaders Association v. United States), challenged the President's sweeping use of national security and emergency powers to impose tariffs without Congressional approval. Lower courts had split, with the U.S. Court of International Trade upholding most of the tariffs in 2025 before the Federal Circuit reversed in part, sending the case to the Supreme Court on an expedited track.

The 6-3 decision largely follows the reasoning of the 2019 American Institute for International Steel case but goes further by limiting the President's discretion under both Section 232 and IEEPA when tariffs are applied globally rather than to specific threats.

The ruling does not affect existing China-specific tariffs under Section 301 or sanctions regimes, but it significantly constrains the President's ability to impose broad, universal import duties without new statutory authority.

The White House has 30 days to comply with the Court's order to cease tariff collection and begin refunds. Legal and economic teams are already preparing for potential new, narrower tariff actions under existing trade remedy laws. The decision reshapes U.S. trade policy at a time when global supply chains, inflation, and geopolitical competition remain dominant concerns. Further appeals are unlikely as the Supreme Court's ruling is final on federal questions. Updates will continue as implementation and potential legislative responses unfold.