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UNITED STATES ------------------------------------2484NEWS STORY

Supreme Court Deems Trump's Tariffs Illegal, Sending Shockwaves across the Hemisphere

Supreme Court Limits Executive Power and Triggers Global Reactions

The U.S. Supreme Court ruled the tariffs imposed by the Trump administration illegal, marking not only a political setback but also a significant economic and constitutional challenge. The February 20, 2026, decision determined that the president exceeded his authority by imposing global tariffs under an emergency law, opening the door to a wave of lawsuits, potentially billions in refunds, and cautious responses from international trading partners.

Prior to the ruling, the U.S. government had collected more than $133 billion in tariffs deemed illegal under the International Emergency Economic Powers Act (IEEPA). Broader estimates suggest that by February 2026, the total could have exceeded $160–175 billion, including other measures in the tariff package. The refund process has been remitted to lower courts, such as the U.S. Court of International Trade, where importers and large corporations are expected to file claims to recover payments. Legal experts warn that the process may take years and be complex, particularly affecting small businesses.

The ruling underscores the constitutional balance of powers, affirming that only Congress can establish taxes and tariffs at this scale. Chief Justice John Roberts emphasized that while the emergency law allowed “regulation of imports” in extraordinary situations, it did not authorize tariffs of indefinite size and scope without Congressional approval. The decision reinforces limits on executive authority in fiscal and trade policy.

President Trump responded with outright rejection, calling the ruling “deeply disappointing” and criticizing the judges for limiting his economic and trade policy powers. Meanwhile, major corporations—from retailers like Costco to automotive and manufacturing industries—saw stock gains in anticipation that tariff elimination would reduce input costs and consumer prices.

The reversal of the tariffs has raised both expectations and caution among the United States’ main trading partners. European Commission officials stated that they are analyzing the ruling and awaiting clarification on the measures to take, noting that previous reciprocal tariffs had affected trade agreements implemented the year before. The British government indicated it will work with Washington to understand how the decision will impact current and future tariffs, emphasizing the importance of maintaining a stable and predictable trade relationship. While China has not issued official statements regarding this specific ruling, experts recall that previously imposed reciprocal tariffs had caused tensions between Beijing and Washington, and countries like China had responded with counter-tariffs, suggesting that the Supreme Court’s decision could influence future trade deals and negotiations with major Asian powers.

Beyond the legal realm, the ruling carries broad economic implications. The Congressional Budget Office estimated that if all questioned tariffs had remained, they could have generated around $300 billion annually over the next decade. With the larger tariffs now overturned, this revenue potential is uncertain, increasing pressure on the administration to identify legally sound alternatives to support its trade agenda. Although the Trump administration has indicated the possibility of imposing new tariffs under laws other than the Emergency Powers Act, legal and commercial uncertainty remains. The Supreme Court ruling reaffirms that any large-scale import taxation must have clear Congressional authorization, emphasizing constitutional checks and balances in trade policy. Litigation over refunds and international negotiations will shape U.S. economic policy and its relationships with trading partners for years to come.

By Heydi Bernal for Ruta Pantera on 2/20/2026 6:48:23 PM

×
References:
Reuters. (2026, February 20). US Supreme Court strikes down Trump’s global tariffs. Retrieved February 2026, from Reuters World News.
Univision Noticias. (2026, February 20). Las claves del fallo de la Corte Suprema contra los aranceles de Trump. Retrieved February 2026.
Tax Foundation. (2026, February 20). Tariff revenue and refund implications after Supreme Court ruling. Retrieved February 2026.
Financial Content. (2026, February 20). SCOTUS strikes down tariffs; billions in refunds loom. Retrieved February 2026.
Diario Libre. (2026, February 20). U.S. partners respond cautiously to Trump tariff reversal. Retrieved February 2026.
Congressional Budget Office. (2025). Trade and tariff revenue projections. Washington, DC: CBO.


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