U.S. Supreme Court rejects Trump tariffs

21 FEBRUARY 2026

Tariffs under Emergency Law struck down

The United States Supreme Court struck down President Donald Trump’s far-reaching global tariffs, handing him a significant loss on an issue crucial to his economic agenda.
The 6-3 decision centres on tariffs imposed under an emergency powers law, including the sweeping “reciprocal” tariffs he levied on nearly every other country, such as India.
President Trump had declared trade deficits a national emergency.
These tariffs applied to many countries, including India, and the U.S. Treasury collected over $133 billion in import taxes under this law.

The court ruling

The U.S. Constitution clearly gives Congress the power to impose taxes, including tariffs.
- The President (Executive Branch) does not have independent taxing authority.
- The case deals with separation of powers — specifically, whether the President can use emergency powers to bypass Congress on taxation.

What Happens Next?

The ruling does not stop President Trump from imposing tariffs under other trade laws.
It is unclear whether companies will receive refunds for tariffs already paid.
Companies like Costco may pursue refunds in lower courts.
The process could be legally complex.