U.S. Supreme Court rejects Trump's global tariffs

U.S. Supreme Court strikes down Trump's global tariffs, ruling his actions exceeded authority and impacting the global economy significantly.

The U.S. Supreme Court struck down on Friday (February 20, 2026) President Donald Trump's sweeping tariffs that he pursued under ​a law meant for use in national emergencies, rejecting one of his most contentious assertions of his authority in a ruling with major implications for the global economy.

The justices, in a 6-3 ruling, ‌upheld a lower court's decision that the Republican president's use of this 1977 law exceeded his authority. The Supreme Court reached its ​conclusion in a legal challenge by businesses affected by the tariffs and 12 U.S. states, most of them Democratic-governed, against Mr. Trump's unprecedented use of this ⁠law to unilaterally impose the import taxes.

Mr. Trump has leveraged tariffs - taxes on imported goods - as a key economic and foreign policy tool.

They have been central to a global trade war that Mr. Trump initiated after he began his second term as president, one that has alienated trading partners, affected financial markets and caused global economic uncertainty.