The Supreme Court scrambled the US trade landscape Friday when it struck down the centerpiece of President Trump’s second-term tariff program, ruling 6-3 that his sweeping blanket tariffs are illegal.
The ruling came just over one year into Trump’s second term and after skeptical questioning from key justices during oral arguments last November. It appears set to immediately halt a massive section of Trump’s tariffs, which were announced last year on “Liberation Day” using a 1977 law called the International Emergency Economic Powers Act (IEEPA).
“IEEPA does not authorize the President to impose tariffs,” read the decision, written by Chief Justice John Roberts.
Trump attacked the high court in his first response Friday, particularly the justices in the majority, saying they were a “disgrace to our nation.” He hinted that the administration would pursue alternative methods toward implementing its trade goals.
His first move: Imposing a 10% “global tariff” under Section 122 of the Trade Act of 1974. That statute allows the president to impose tariffs of up to 15% for up to 150 days to address trade deficits. That authority, however, has never been used to impose tariffs.
The president signed an executive order late Friday imposing the 10 percent tariffs under Section 122 of the Trade Act of 1974. This grants the president the unilateral ability to impose tariffs but with a 150-day limit. After that time, Congress would need to approve any extension.
“It is my Great Honor to have just signed, from the Oval Office, a Global 10% Tariff on all Countries, which will be effective almost immediately. Thank you for your attention to this matter!” Trump wrote in a social media post.
The SCOTUS ruling also raised the question of refunds, which could return over $100 billion to importers in the months ahead. It upholds two lower courts — including the US Court of International Trade — that previously found Trump did not have the authority to impose global tariffs using the 1977 law.
The decision will have wide-ranging ramifications, affecting global trade, consumers, companies, inflation and the pocketbooks of every American. In recent weeks, Trump has already made plans to roll back some tariffs on metals, including on steel and aluminum goods, as he and his administration seek to battle an affordability crisis ahead of the midterm elections.
Read more: What Trump promised with his ‘Liberation Day’ tariffs — and what he delivered
LIVE 143 updates
Trump says he’ll impose 10% ‘global’ tariff under different authority
President Trump said in a press briefing on Friday that his administration will be placing a “10% global tariff … over and above the normal tariffs already being charged” now that the Supreme Court has struck down his wide-sweeping tariff regime.
In a 6-3 vote on Friday, the Supreme Court ruled that the International Emergency Economic Powers Act (IEEPA) does not give the president the authority to levy tariffs, dealing a blow to the Trump administration’s signature economic policy.
The high court’s ruling, Trump said at the briefing, was “deeply disappointing.”
In those tariffs’ place, which the president claimed authority under IEEPA to implement, a global tariff authorized under Section 122 of the Trade Act of 1974 will now be put in place, and the administration will be starting several trade investigations under Section 301.
The White House, Trump said, is ready to replace his tariff regime, struck down by the Supreme Court, with “methods, statutes, practices, and authorities” recognized by the court system and Congress that “are even stronger than IEEPA tariffs.”
The alternative measures the administration will now put in place to replace the tariffs will “actually increase” the amount of money coming into the country, based on the court’s decision, Trump said at the briefing.
The president also mentioned that “all national security tariffs” under Section 232 and Section 301 “remain fully in place and in full force and effect.”
The Supreme Court’s ruling on Friday leaves tariffs implemented under Section 232 of the Trade Expansion Act of 1962 — which cite national-security concerns — unchanged, keeping in place a range of import duties on products ranging from copper and semiconductors to automobiles and wood products such as cabinetry.
Section 232 tariffs include 50% levies on imports of semi-finished copper products, 25% levies on certain imported semiconductors — including Nvidia’s (NVDA) H200 chips — and automobile tariffs, including 25% levies on trucks and 10% levies on buses.
Trump signs executive order implementing 10% ‘global’ tariffs
President Trump followed through on his threat to impose 10% ‘global’ tariffs after his levies were largely struck down by the Supreme Court on Friday, Bloomberg reports.
Fri, February 20, 2026 at 10:18 PM UTC ‘It will not be automatic or immediate’: Companies brace for a messy tariff refund process
Friday’s landmark Supreme Court ruling struck down President Trump’s blanket tariffs but left open a key question around whether companies that already paid the duties will be able to get refunds.
The court’s majority opinion was silent on that top-of-mind issue for companies, while President Trump signaled that he wouldn’t give tariff refunds willingly.
“I guess it has to get litigated for the next two years,” the president said as he declined to respond directly to a question of whether he would honor refunds for companies that file for them.
“It would have been a simple matter for the president to assure American taxpayers who carried this billions-of-dollar burden to commit to returning the funds that were unlawfully levied,” said Erik Smithweiss, a partner focused on trade issues at the firm GDLSK, in an interview Friday afternoon.
“The notion that American taxpayers have to now litigate to get back money that the government illegally collected is unfortunate,” he added.
The process ahead is murky, likely requiring plenty of legal wrangling as the refund issue now appears headed to lower courts, in particular the US Court of International Trade (CIT).
That three-judge panel previously ruled in 2025 that Trump’s blanket tariffs were illegal, a ruling that the Supreme Court upheld Friday.
The Penn Wharton Budget Model laid out the stakes, saying that reversing these tariffs may generate up to $175 billion in refunds. The group added that, unless the duties are replaced by another source, future tariff revenue collections could also fall by half.
Fri, February 20, 2026 at 6:36 PM UTC Trump responds to Supreme Court decision
President Trump blasted the Supreme Court majority that struck down his ability to impose sweeping tariffs, calling the justices who ruled against his duties a “disgrace.”
He also hinted in a press conference that he would seek alternative methods to continue his tariff regime. His first move: a 10% “global” tariff under a different authority that allows him to impose tariffs for up to 150 days.
“We have alternatives,” Trump said. “Great alternatives.”
You can watch his comments here:
Fri, February 20, 2026 at 6:11 PM UTC Tariff ruling kicks off ‘mess’ of a refund fight
The Supreme Court majority that struck down President Trump’s ability to issue blanket tariffs on US trading partners did not address the issue of refunds — that is, will companies be able to get them for the duties they paid … that are now ruled unconstitutional?
From Bloomberg:
Though the Supreme Court majority didn’t address it, the dissenting minority did. Justice Brett Kavanaugh, who authored the dissent, noted that the process could be a “mess” for the US Treasury to navigate.
Fri, February 20, 2026 at 4:53 PM UTC The cards Trump still has left to play to rebuild his tariff regime
After the US Supreme Court struck down President Trump’s tariffs, what are his options?
Trump himself has said previously that the law he used to implement the tariffs is an essential tool in his toolbox. But other members of the administration have suggested that the White House could simply rebuild his tariff regime through other — albeit more cumbersome — methods.
The Associated Press has a good rundown of his options:
They run through them all here — read more.
Fri, February 20, 2026 at 3:53 PM UTC Stocks rise as tariff-sensitive sectors pop
US stocks rose in the immediate aftermath of the Supreme Court’s decision to strike down President Trump’s most sweeping tariffs. The Nasdaq Composite (^IXIC) led gains.
Sectors with more exposure to tariffs saw a bigger bounce. The Dow Jones Transportation Average (^DJT) popped around 1%. Abercrombie & Fitch (ANF) saw outsize gains, as did Stanley Black & Decker (SWK).
Head over to our markets blog for full coverage of the stock market’s reaction to the ruling.
Fri, February 20, 2026 at 3:18 PM UTC US Supreme Court strikes down Trump’s tariffs
The US Supreme Court changed the US trade agenda on Friday, ruling that blanket tariffs are illegal and striking down President Trump’s most sweeping tariffs.
In a 6-3 decision, the court held that the 1977 International Emergency Powers ACT (IEEPA) does not give Trump the authority to impose taxes without approval from Congress.
This ruling will mean that much of the administration’s current tariff agenda will be brought to a halt, especially those tariffs first announced in April last year, on what has come to be known as Trump’s “Liberation Day” tariffs.
Today, economists at Penn-Wharton said that over $175 billion in tariff revenue may need to be refunded if the Supreme Court rules against Trump’s tariffs.
However, according to SCOTUSblog, the court mentioned nothing about whether the government should go about returning the billions of dollars it made from importers.
Justices Clarence Thomas, Brett Kavanaugh, and Samuel Alito all dissented.
Justice Kavanaugh, in his dissent, said, “The United States may be required to refund billions of dollars to importers who paid the IEEPA tariffs, even though some importers may have already passed on costs to consumers or others.”
Fri, February 20, 2026 at 12:40 PM UTC US tariff revenue at risk in SCOTUS ruling tops $175B: Penn-Wharton
Fri, February 20, 2026 at 9:50 AM UTC Trump meets Novartis CEO, says drugmaker building 11 US plants
Novartis (NVS) CEO Vas Narasimhan met with President Trump at the White House on Wednesday, where the president said the company is set to build 11 plants in the US.
Trump hit Switzerland with 39% tariffs last year, but then agreed to cut the duties to 15% in November. Last month, Novartis said it expected to be protected from tariffs under some agreements with the US and strong domestic manufacturing.
Reuters reports:
Fri, February 20, 2026 at 9:43 AM UTC Indonesia secures 19% tariff deal with US, palm oil and other commodities exempt
Thu, February 19, 2026 at 12:24 PM UTC Trump administration slams New York Fed study that says US consumers bear the cost of tariffs
The Trump administration is pushing back on claims from the New York Federal Reserve that US consumers and businesses are bearing the brunt of higher costs due to President Trump’s tariffs.
“The paper is an embarrassment,” National Economic Council Director Kevin Hassett told CNBC on Wednesday. “I think it’s the worst paper I’ve ever seen in the history of the Federal Reserve System.
However, data from the JPMorgan Chase Institute, released Thursday, also found that tariffs paid by midsize US businesses tripled in 2025.
Yahoo Finance’s Jennifer Schonberger reports on the latest news on Trump’s tariffs:
Thu, February 19, 2026 at 11:55 AM UTC Indonesia, US firms sign over $7B in trade, investment deals
Thu, February 19, 2026 at 11:42 AM UTC Vietnamese airlines sign $30-billion deals for 90 Boeing jets
Wed, February 18, 2026 at 12:32 PM UTC US energy chief downplays interest in Greenland’s rare earths
Wed, February 18, 2026 at 9:14 AM UTC Japan, US reach $36B of gas, mineral deals in Trump pact
Japan plans to invest up to $36 billion in US oil, gas, and critical mineral projects, part of Tokyo’s $550 billion commitment under the trade agreement it struck with President Trump last year.
“Our MASSIVE Trade Deal with Japan has just launched!” Trump posted on Tuesday on social media. “The scale of these projects are so large, and could not be done without one very special word, TARIFFS.”
Japan’s Prime Minister Sanae Takaichi said that the projects will help build more resilient supply chains through partnerships in crucial areas for economic security.
Bloomberg News reports:
Tue, February 17, 2026 at 1:13 PM UTC Italian exports to US rise 7% in 2025 despite Trump’s tariffs
Tue, February 17, 2026 at 1:12 PM UTC Copper falls as stockpiles rise due to tariff fears
Fri, February 13, 2026 at 10:59 PM UTC Bessent says any narrowing of US metals tariffs up to Trump Fri, February 13, 2026 at 5:51 PM UTC Supreme Court adds next Friday as decision day as tariff verdict looms
The Supreme Court has added next Friday, Feb. 20, as a decision day, the first time in weeks it could potentially issue a verdict on the closely watched case involving President Trump’s tariffs.
Next Friday is listed as a non-argument session and conference day on the high court’s calendar.
The high court heard arguments on the tariff case in November on an expedited basis, and both liberal- and conservative-leaning justices asked skeptical questions about Trump’s authority to impose the tariffs.
The duties at issue are Trump’s “Liberation Day” tariffs, in which the president slapped levies ranging from 10% to 50% on imports from virtually all US trading partners. The Trump administration has said a defeat at the Supreme Court would only prompt it to impose the duties via other legal means — though Trump himself has said those processes would be more cumbersome and has implored the court to uphold the tariffs.