US Supreme Court rules Trump’s sweeping global tariffs are illegal
Sydney Morning Herald
by Michael KoziolFebruary 20, 2026
AI-Generated Deep Dive Summary
The U.S. Supreme Court has invalidated former President Donald Trump's broad global tariffs, marking a significant defeat for his economic policies. In a 6-3 ruling, the court determined that Trump exceeded presidential authority by imposing these tariffs without congressional approval, as the Constitution vests tariff-setting powers solely in Congress during peacetime.
The decision directly impacts Trump's "reciprocal tariffs," which affected numerous countries including Australia. These tariffs were struck down due to their unprecedented scope and the administration's reliance on emergency powers, which the court deemed an overreach. While other sectoral tariffs like those on steel and aluminum remain unaffected, Trump hinted at reimposing global tariffs under different authority, signaling ongoing tensions in international trade policy.
Reacting to the ruling, Trump criticized the Court, accusing justices appointed by him of lacking courage and suggesting foreign interests influenced the decision. Despite the setback, Trump's broader tariff strategy remains a focal point, aiming to address the U.S. trade deficit but sparking significant economic and diplomatic challenges.
The outcome underscores the delicate balance between executive and legislative powers in setting tariffs. It also highlights the potential for massive refunds and international reprisals, with affected countries now poised to seek compensation. The ruling's implications extend beyond U.S. borders, potentially reshaping global trade dynamics as other nations reassess their trade strategies in response.
In the wake of the decision, U.S. share markets showed resilience, reflecting investor optimism about reduced trade uncertainty. However, the long-term effects on international relations and U.S. economic policies remain to be seen, as Trump's tariff agenda continues to provoke debate and challenge traditional trade norms.
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Originally published on Sydney Morning Herald on 2/20/2026