Trump's tariffs illegal: US top court strikes down tariffs imposed across globe
Times of India
by TOI BUSINESS DESKFebruary 20, 2026
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The U.S. Supreme Court delivered a major blow to former President Donald Trump's trade policies by ruling that his sweeping tariffs imposed globally violated federal law. The court's 6-3 decision, led by Chief Justice John Roberts, found that Trump overstepped presidential authority under the International Emergency Economic Powers Act (IEEPA) when he unilaterally levied tariffs on imports from most of the world. This landmark ruling undermines a key component of Trump's foreign policy and economic agenda, significantly limiting the president's ability to impose tariffs without explicit congressional approval.
The court determined that Trump's reliance on emergency powers under IEEPA was insufficient, as it "falls short" of the clear authorization required by law. Roberts emphasized that Congress, not the president, holds the authority to regulate trade through carefully constrained frameworks. This decision impacts most of Trump's tariffs, including those imposed in 2018 on China and later expanded globally, but leaves unaffected industry-specific tariffs under Section 232 of the Trade Expansion Act of 1962, which were based on national security concerns.
The ruling is expected to bring relief to economies worldwide, as it curtails what many viewed as an aggressive and unilateral approach to trade. Trump had argued that his authority to impose tariffs was inherent and necessary to address threats like drug trafficking and the U.S. trade deficit. However, the court rejected this argument, reasserting Congress's role in regulating trade and signaling a broader shift in how presidential powers are interpreted.
The decision also raises significant financial implications for the U.S., as Trump had warned that rolling back tariffs could result in hundreds of billions—or even trillions—of dollars in repayment to other countries. This includes compensation for
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Originally published on Times of India on 2/20/2026