The U.S. Supreme Court on February 20, 2026, ruled to cancel the comprehensive global customs tariffs imposed by President Donald Trump under the International Emergency Economic Powers Act (IEEPA) - 1977 law.

• The decision was made 6-3, with a coalition of conservative and liberal judges led by Chief Justice John Roberts.
• The Court emphasized that the President’s unilateral and unlimited authority to impose tariffs using this law exceeds his powers, as IEEPA does not grant authority to set tariffs, and trade taxes are within Congress’s constitutional jurisdiction.
• This ruling largely invalidates the broad tariffs implemented during Trump’s second term (2025-2026), such as high import duties on countries like China, Canada, Mexico, and the EU. However, some tariffs based on other laws, such as Section 232 (national security) or Section 301 (e.g., steel/aluminum), remain unaffected and continue to be in effect.
Trump responded strongly to the ruling: he called it “disgraceful,” “I am ashamed of the Court members,” and announced that he immediately signed a new 10% global tariff decision under other legal authorities, such as relevant provisions of the Trade Act.
While this decision eases global trade, uncertainty persists due to Trump’s efforts to introduce new tariffs through alternative channels.
Markets saw positive movements, especially in import-dependent sectors like automobile retailers.