Supreme Court strikes down Trump tariffs 6-3. Tech stocks rally, but will prices drop?
Mashable
February 20, 2026
AI-Generated Deep Dive Summary
The Supreme Court has ruled 6-3 that President Trump lacked the authority to impose many of his tariffs, marking a significant defeat for the former president's use of executive power. The decision, which aligns with constitutional principles granting Congress sole authority over peacetime tariffs, invalidates Trump's sweeping trade measures. While tech stocks like Apple, Amazon, NVIDIA, and Dell saw a rally following the ruling, consumers are unlikely to see immediate price relief. Many companies have already baked tariff-related costs into their pricing structures, particularly for products launching in 2026.
The legal battle over Trump's tariffs has been ongoing for years, with challenges mounted by businesses and trade groups. The Court's majority opinion, written by Chief Justice John Roberts, emphasized that the International Emergency Economic Powers Act of 1977 does not grant the president unilateral authority to impose tariffs. This decision underscores a broader debate about executive overreach and the balance of power between the executive branch and Congress.
For tech companies, Trump's tariffs had far-reaching consequences, leading to increased costs for imports and supply chain disruptions. Apple alone faced $1.1 billion in tariff costs in 2025, forcing many firms to shift manufacturing to avoid tariffs. While the ruling could theoretically lower prices over time, experts warn that businesses are unlikely to reduce prices immediately due to existing contracts, inflationary pressures, and other economic factors.
Ravin Gandhi, CEO of GMM Nonstick Coatings and a tariff expert, explained that consumers should not expect meaningful price relief soon. Tariffs were just one component of broader pricing strategies, and companies typically do not lower prices quickly when costs decrease. Additionally, ongoing global issues like inflation, supply chain disruptions, and memory shortages driven by the AI industry continue to push tech prices upward.
While Trump's tariffs have been struck down, reinstating them through Congress would require a complex political process. Trade policy is inherently divisive, and even lawmakers supportive of tariffs may hesitate given current economic and political climates. This ruling
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Originally published on Mashable on 2/20/2026