Major Setback for Trump: U.S. Supreme Court Rules Tariffs 'Illegal'
Court declares the President lacks the legal authority to impose tariffs; rules use of 'National Emergency' powers as an overreach
Babushahi Network Bureau
ANI | Feb 20, 2026 20:58 (IST)
Washington DC [US], February 20,2026 (ANI): In a major blow to US President Donald Trump’s signature trade policy, the US Supreme Court on Friday invalidated most of his sweeping tariff measures, The Washington Post reported.
According to The Post, the US apex court held that the US President did not possess the authority under the 1977 International Emergency Economic Powers Act (IEEPA) to impose extensive import duties on goods from nearly all US trading partners.
The ruling is expected to have wide-ranging consequences for global trade, businesses, consumers, inflation trends and household finances across the country.
The verdict marks a notable shift from a series of recent wins for Trump at the Supreme Court. Over the past year, the justices had largely sided with the administration in interim orders, allowing policies such as a ban on transgender troops serving in the military, granting the United States DOGE Service access to sensitive data, and enabling significant cuts to the Education Department while legal challenges continued, The Washington Post reported.
The financial implications of the ruling are substantial. The tariffs in question cover trillions of dollars in trade, and the US government collected nearly USD 134 billion in levies through December 14 under the contested authority, The Washington Post reported.
According to estimates by the Tax Foundation, Trump’s trade war will cost American households approximately USD 1,100 each in 2025, The Post reported.
The judgement came days after the United States and India announced that they have reached a framework for an Interim Agreement regarding reciprocal and mutually beneficial trade.
The framework reaffirmed the countries’ commitment to the broader U.S.-India Bilateral Trade Agreement (BTA) negotiations, launched by President Donald Trump and Prime Minister Narendra Modi on February 13, 2025, which will include additional market access commitments and support more resilient supply chains.
A Joint Statement had said that the Interim Agreement between the United States and India will represent a historic milestone in our countries’ partnership, demonstrating a common commitment to reciprocal and balanced trade based on mutual interests and concrete outcomes.
According to the joint statement, India will eliminate or reduce tariffs on all U.S. industrial goods and a wide range of U.S. food and agricultural products, including dried distillers’ grains (DDGs), red sorghum for animal feed, tree nuts, fresh and processed fruit, soybean oil, wine and spirits, and additional products.
The United States will apply a reciprocal tariff rate of 18 percent under Executive Order 14257 of April 2, 2025, as amended, on originating goods of India, including textile and apparel, leather and footwear, plastic and rubber, organic chemicals, home décor, artisanal products, and certain machinery. And, subject to the successful conclusion of the Interim Agreement, will remove the reciprocal tariff on a wide range of goods identified in the Potential Tariff Adjustments for Aligned Partners Annex to Executive Order 14346 of September 5, 2025, as amended, including generic pharmaceuticals, gems and diamonds, and aircraft parts.
US had earlier imposed 50 per cent tariff on Indian goods, including a 25 per cent tariff for importing oil from Russia (ANI)
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WASHINGTON D.C./ Chandigarh: February 20, 2026
In a landmark ruling, the United States Supreme Court has dealt a severe blow to President Donald Trump, stating that he does not have the legal authority to impose tariffs. The Court declared that the tariffs imposed by Trump on various countries are illegal. The Supreme Court ruled that President Trump overstepped his authority by using laws intended for national emergencies to implement large-scale tariffs.
Key Highlights of the Ruling:
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Lack of Statutory Authority: The Court stated, "The law does not grant the President the authority to impose tariffs."
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6-3 Split Decision: In a 6-3 decision led by Chief Justice John Roberts, the Court upheld a lower court's ruling which found that Trump misused the International Emergency Economic Powers Act (IEEPA) to levy massive import taxes.
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Interpretation of the 1977 Law: The IEEPA, enacted in 1977, allows the President to regulate commerce during a national emergency. However, the Court noted that the law makes no explicit mention of the power to impose tariffs.
Chief Justice’s Remarks:
According to news agency Reuters, Chief Justice John Roberts wrote in his opinion:
"To justify the claim of executive power to impose tariffs, the President must show clear authorization from Congress."
The Court further concluded that the President "cannot do so" under the current legislative framework.