OVERVIEW: In a major 6-3 decision on February 20, 2026, the
- The Decision: Chief Justice John Roberts authored the majority opinion, joined by conservative Justices Neil Gorsuch and Amy Coney Barrett, along with the court's three liberal justices. Roberts wrote that the Constitution "very clearly" gives Congress the power to tax, and the president cannot "unilaterally impose tariffs of unlimited amount, duration, and scope" without specific statutory permission.
- Dissenting Voices: Justices Brett Kavanaugh, Clarence Thomas, and Samuel Alito dissented, arguing that historical precedent and the text of the IEEPA supported the administration's actions.
- Affected Policies: The ruling specifically invalidates the "Liberation Day" tariffs and reciprocal duties levied on nearly every U.S. trading partner. It does not affect individual tariffs imposed under different laws, such as those on steel and aluminum
Breaking news. Supreme Court blocks Trump tariffs in major blow to White House agenda
The US Supreme Court struck down Donald Trump’s sweeping global tariffs, ruling the president overstepped his authority by invoking emergency powers.
The economic impact of Trump's tariffs has been estimated at some $3 trillion (€2.76tn) over the next decade, according to the Congressional Budget Office. The Treasury has collected more than $133 billion (€122bn) from the import taxes the president has imposed under the emergency legislation, federal data from December shows.
Many companies, including the big-box warehouse chain Costco, have already lined up in court to demand refunds.
Billions of dollars in potential refunds
Since 2 April 2025 — the day President Trump branded Liberation Day as he unveiled his sweeping tariff plan — the US Treasury has taken in about $240 billion (€221bn) in tariff revenue. Capital Economics says that if refunds are ordered, the cost could be roughly $120 billion (€110bn), around 0.5 per cent of the country's GDP.
In his dissent, Justice Kavanaugh was the only justice to raise the refunds issue, warning it would turn into a "mess".
It is still unclear whether the Trump administration will be liable to pay any firms back but the lawsuits now have a firmer ground to stand on.
- The SCOTUS decision was announced shortly after the New York open, which reacted very positively to the news, with the S&P500 spiking as high as 1%.
- Gains have since pared down with the S&P sitting around 0.3% higher than last close at the moment.
Over the past year, investors have generally welcomed moves to rein in tariffs. But the broader assumption is that Trump will keep pushing his tariff agenda and fight any rollback — which is why the market reaction has been relatively muted so far.
In January, Trump said in a Truth Social post that if the country's top legal body "were to rule against the United States of America on tariffs" there would be "hundreds of billions of dollars to pay back".
"If the Supreme Court rules against the United States of America on this National Security bonanza, we're screwed!" he said at the time.
This is a developing story and our journalists are working on further updates.
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The justices ruled 6-3 against Trump's tariffs, rejecting one of the U.S. President's most contentious assertions of his authority in a ruling with major implications for the global economy.
Uploaded: Feb 20, 2026
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