The Supreme Court Just Struck Down a Large Portion of President Donald Trump's Tariffs -- Here's How This Could Impact the Stock Market
The Motley Fool
by newsfeedback@fool.com (Bram Berkowitz)February 20, 2026
AI-Generated Deep Dive Summary
The Supreme Court has ruled that President Donald Trump exceeded his authority under the International Emergency Economic Powers Act (IEEPA) when imposing tariffs on nearly all major U.S. trading partners. This decision significantly impacts Trump's trade policies and could have broader implications for international relations and the stock market. The ruling invalidates a large portion of the tariffs, which were once seen as a hallmark of Trump's "America First" agenda.
The tariffs in question were first imposed on April 2, 2023, a date Trump referred to as "Liberation Day." These high tariffs stunned global markets and triggered an immediate bear market. However, over time, Trump delayed or reversed some tariffs and negotiated trade deals with several countries. Despite the initial market volatility, the stock market rebounded strongly in the following months and continued to perform well into 2025.
The Supreme Court's decision could reduce uncertainty for investors, as it clarifies the limits of presidential authority to impose tariffs without congressional approval. This ruling may also signal a shift away from protectionist trade policies and toward more predictable international economic relations. For businesses and markets, this outcome could foster stability and encourage global trade, potentially boosting investor confidence.
The implications for the stock market are significant, as reduced trade tensions and clearer policy frameworks often lead to stronger economic performance. Investors may view this ruling as a positive step toward reducing risks associated with unpredictable trade policies. Additionally,
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Originally published on The Motley Fool on 2/20/2026