Supreme Court torpedoes Donald Trump’s tariff regime in check on executive power
Financial Times
February 20, 2026
AI-Generated Deep Dive Summary
The US Supreme Court delivered a significant blow to President Donald Trump’s tariff regime, ruling that his authority to impose tariffs on imports from China was unconstitutional. This decision marked a major check on executive power, with the justices narrowly invalidating part of the Tariff Act of 1930, which had been used by Trump to justify his trade policies. The Court’s 5-4 ruling underscored concerns about the overreach of presidential authority in matters of international trade.
The tariffs, implemented in 2018 and 2019, were a flagship policy for Trump, aimed at addressing China’s intellectual property theft and forced technology transfers. However, the Court found that the Tariff Act of 1930 did not grant the president the broad authority to impose such tariffs without congressional approval. This decision could have far-reaching implications for future trade policy and executive action in similar contexts.
The ruling has sparked frustration among Trump and his supporters, with the former president accusing the justices of being “disloyal” and prioritizing political over legal considerations. Meanwhile, business groups and free-trade advocates have praised the decision, arguing that it restores a balance of power and limits the president’s ability to unilaterally disrupt global trade relations.
For businesses, this ruling is significant as it clarifies the boundaries of executive authority in implementing tariffs and other trade-related measures. It also sets a precedent for future administrations, emphasizing the need for congressional involvement in matters of international trade policy. The decision reinforces the principle that presidents cannot act beyond the scope of their constitutional powers, even in areas where economic and political stakes are high.
Ultimately, this case highlights the delicate interplay between executive power and judicial oversight in US governance. While Trump’s tariff regime was designed to assert American economic interests, the Supreme Court’s ruling serves as a reminder of the checks and balances inherent in the nation’s constitutional framework. For businesses, this means greater predictability and accountability in trade policy moving forward, which could influence investment decisions and global market dynamics.
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Originally published on Financial Times on 2/20/2026