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US Supreme Court strikes down Trump tariffsThe US Supreme Court struck down Donald Trump’s tariff orders, ruling them unlawful in Learning Resources v. Trump and Trump v. V.O.S. Selections, Inc., reshaping US trade and executive authority.By Bhupendra Paintola  February 20, 2026, 9:08:56 PM IST (Updated)3 Min ReadThe US Supreme Court on Friday struck down Donald Trump’s sweeping tariff orders, declaring them illegitimate, a ruling that could reshape the trajectory of America’s trade and economic policy.

The decision comes after the court had deferred its verdict at least thrice over the past few months, keeping markets and policymakers on edge. The ruling was widely seen as pivotal for the broader US economy, given the scale and scope of the levies in question.

Filed in 2025, Learning Resources v. Trump and Trump v. V.O.S. Selections, Inc. — consolidated before the Supreme Court — sought clarity on whether the International Emergency Economic Powers Act (IEEPA) empowered the second Trump administration to impose wide-ranging tariffs through executive orders.

With the top court now declaring the tariffs unlawful, the verdict is expected to have far-reaching implications for trade flows, executive authority and Washington’s economic outlook.

Chief Justice John Roberts, writing for the majority, said, “We hold that IEEPA does not authorise the President to impose tariffs,” drawing a clear line around the scope of executive power under the International Emergency Economic Powers Act.

Justice Elena Kagan underscored the statutory limits, stating, “Nothing in IEEPA’s text, nor anything in its context, enables the President to unilaterally impose tariffs.” She added that “without statutory authority, the President’s tariffs cannot stand,” effectively invalidating the contested levies.

Justice Clarence Thomas, however, took a different view, observing that “neither the statutory text nor the Constitution provide a basis for ruling against the President,” signalling disagreement within the bench.

In a detailed dissent, Justice Brett Kavanaugh wrote that IEEPA “clearly authorises the President to impose tariffs,” arguing that the tariffs “may or may not be wise policy; but… they are clearly lawful.”

He warned that because IEEPA tariffs had helped facilitate trade deals “worth trillions of dollars — including with foreign nations from China to the UK to Japan — the court’s decision could generate uncertainty regarding ongoing trade agreements. That process, too, could be difficult.”

Kavanaugh further argued that the President retains authority under Section 338 of the Tariff Act of 1930 to impose tariffs on countries that disadvantage US commerce, and cautioned that the ruling could have “profound consequences” for the US Treasury, including potential refunds of billions already collected.

Markets reacted positively to the clarity. Dow futures rose 182 points, Nasdaq futures gained 152 points, while FTSE, DAX and CAC futures advanced between 0.8% and nearly 1%. Gift Nifty was up 149 points, signalling a firm start for Indian equities.

An EU spokesperson said the bloc had “taken note of the ruling” and was analysing it carefully, adding that it remained in close contact with the US administration and continued to advocate for lower tariffs and efforts to reduce them.Continue ReadingFirst Published: Feb 20, 2026 8:42 PM ISTTagstrump tariffsUS Tariff