Name: Supreme Court Strikes Down Trump’s Global Tariffs
Uploaded: 2026-02-21T08:24:14.000Z
Description: Trump has leveraged tariffs–taxes on imported goods–as a key economic and foreign policy tool.

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The U.S. Supreme Court struck down on Friday President Donald Trump's sweeping tariffs that he pursued under a law meant for use in national emergencies, in a ruling with major implications for the global economy.

The decision centers on tariffs imposed under the International Emergency Economic Powers Act (IEEPA), including the “reciprocal” tariffs he levied on nearly every other country.

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

The Constitution gives Congress the power to levy tariffs. But the Trump administration argued that the IEEPA, a 1977 law allowing the president to regulate importation during emergencies, also allows him to set tariffs. Other presidents have used the law dozens of times, often to impose sanctions, but Trump was the first president to invoke it for import taxes.

Trump set what he called "reciprocal" tariffs on most countries in April 2025 to address trade deficits that he declared a national emergency. Those came after he imposed duties on Canada, China, and Mexico to address a drug trafficking emergency.

Trump described the tariffs as vital for U.S. economic security. In November he told reporters that without his tariffs, "the rest of the world would laugh at us because they've used tariffs against us for years and took advantage of us." Trump said the United States was abused by other countries, including China, the second-largest economy.

After the Supreme Court heard arguments in the case in November, Trump said he would consider alternatives if it ruled against him on tariffs, telling reporters that "we'll have to develop a 'game two' plan."

The tariff decision doesn't stop Trump from imposing duties under other laws. While those have more limitations on the speed and severity of Trump's actions, top administration officials have said they expect to keep the tariff framework in place under other authorities.

Treasury Secretary Scott Bessent and other administration officials said the United States would invoke other legal justifications to retain as many of Trump's tariffs as possible. Among others, these include a statutory provision that permits tariffs on imported goods that threaten U.S. national security and another that allows retaliatory actions, including tariffs against trading partners that the Office of the U.S. Trade Representative determines have used unfair trade practices against American exporters.

None of these alternatives offered the flexibility and dynamics that IEEPA provided Trump, and may not be able to replicate the full scope of his tariffs in a timely fashion.

Trump's ability to impose tariffs instantaneously on any trading partner's goods raised his leverage over other countries. It brought world leaders to Washington to secure trade deals that often included pledges of billions of dollars in investments or other offers of enhanced market access for U.S. companies.

The economic impact of Trump's tariffs has been estimated at some $3 trillion over the next decade, according to the Congressional Budget Office. The Treasury has collected more than $133 billion from the import taxes the president has imposed under the emergency powers law, federal data from December shows.

<em>Reuters and The Associated Press contributed to this report.</em>

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