(qlmbusinessnews.com . Sat 21st Feb, 2026) London, UK —
Supreme Court Strikes Down Trump's Tariffs, President Vows New Trade Measures in Response
In a dramatic twist to the international trade saga, US President Donald Trump has promised the introduction of a new global tariff at 10%, in response to the US Supreme Court's dismissal of previous tariffs as beyond his authority, a decision he has vehemently criticised. Trump has dubbed the Supreme Court's judgement as “terrible” and labelled the justices who opposed his trade policies as “fools”.
This move came shortly after the Supreme Court, in a decisive 6-3 ruling, invalidated the majority of the global tariffs previously declared by the White House, arguing that the President had exceeded his constitutional powers. The court’s decision marks a significant triumph for the multiple businesses and US states that contested the duties, potentially unlocking billions of dollars in tariff refunds. It has simultaneously thrown the international trade environment into a state of uncertainty.
From the White House on Friday, Trump signalled a complex legal fight ahead for any potential refunds, anticipating the issue to be embroiled in court disputes for years to come. Despite the setback, Trump remained adamant about pursuing tariffs through alternative legal avenues, convinced they promote investment and manufacturing within the US.
The controversy centres on import taxes disclosed by Trump last year, which expanded to include goods from almost every nation worldwide, initially targeting Mexico, Canada, and China. The president's rationale for the tariffs was the enhancement of what he termed “Liberation Day”.
Citing the 1977 International Emergency Economic Powers Act (IEEPA), which allows the president to “regulate” trade during an emergency, the White House sought to justify its actions. However, this sparked widespread criticism both domestically and internationally due to sudden tax increases on imports, raising fears of escalated prices.
During the court's proceedings, the challengers' lawyers argued that the IEEPA made no mention of “tariffs” and that Congress did not envisage granting the president carte blanche to override existing trade agreements and tariffs.
Chief Justice John Roberts, in his opinion, aligned with this interpretation, stating that congressional delegation of tariff powers was always explicit and tightly controlled. The court's liberal justices, alongside two justices nominated by Trump — Amy Coney Barrett and Neil Gorsuch — concurred with the decision, leaving Justices Clarence Thomas, Brett Kavanaugh, and Samuel Alito in dissent.
Trump expressed his profound disappointment with the Republican-nominated justices opposing his trade policy, accusing them of being disloyal to the US Constitution.
Following the court’s decision, Wall Street saw a positive uptick, with the S&P 500 climbing by approximately 0.7%, as US businesses cautiously celebrated the ruling. The business community, including small enterprises impacted by the tariffs, voiced relief, though they acknowledged the long road ahead for supply chain normalisation and the securing of tariff refunds.
Nevertheless, Trump remains undeterred, announcing a new 10% tariff under a seldom-invoked law, Section 122, which allows temporary tariffs pending congressional intervention. This development implies that nations with existing US trade agreements may now encounter this blanket tariff, despite previously negotiated terms.
The complexity of the international trade framework has thus intensified, with trade partners and analysts keenly watching the unfolding events. While major trading partners have offered measured responses, the implications of this ongoing legal and economic tussle remain profound for global commerce and diplomatic relations.
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