What comes next after the top US court struck down Donald Trump’s tariffs?
Financial Times
February 20, 2026
AI-Generated Deep Dive Summary
The US Supreme Court’s recent ruling striking down former President Donald Trump’s tariffs on steel and aluminum imports has sent shockwaves through the business and finance world. The court found that Trump overstepped his authority by imposing the tariffs without proper legal justification, a decision that limits his ability to use such measures in future trade negotiations. This ruling not only undermines Trump’s strategy of using tariffs as a tool for escalating trade wars but also raises questions about the legality of similar actions taken by future administrations.
The tariffs, which were implemented in 2018, were primarily aimed at China but ended up harming US industries that rely on imported steel and aluminum. The World Trade Organization (WTO) had ruled against them in 2020, stating they violated international trade rules. However, the Supreme Court’s decision marks a significant milestone in curbing executive overreach, particularly in matters of international trade. This ruling could set a precedent for how future presidents handle tariffs and other protectionist measures.
Despite this setback, Trump still has alternative tools at his disposal to escalate trade disputes. These include invoking Section 232 of the Trade Expansion Act, which allows the president to impose restrictions on imports deemed threats to national security, or leveraging existing trade agreements like the USMCA with Canada and Mexico. Additionally, the administration could pursue negotiations for new trade deals or increase regulatory scrutiny of foreign imports.
This decision matters because it highlights the delicate balance between using tariffs as a political tool and adhering to international trade laws. For businesses, it underscores the risks of relying on protectionist policies that can be overturned by courts. The ruling also serves as a reminder of the importance of legal frameworks in shaping US trade policy, which could have far-reaching implications for global markets and international relations.
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Originally published on Financial Times on 2/20/2026