The U.S. Supreme Court delivered a landmark ruling on February 20, 2026, declaring the majority of former President Donald Trump's global tariffs illegal. The 6-3 decision found that tariffs imposed under the International Emergency Economic Powers Act (IEEPA) exceeded statutory authority, sparking immediate reactions from political and economic circles.
Trump, who announced plans to reintroduce a 10% global tariff using Section 122 of the Trade Act of 1974, criticized the ruling as "a betrayal of American interests," while Vice President JD Vance condemned it as "lawlessness from the Court." The decision leaves $27.7 billion in tariff revenue collected in January 2026 in limbo, with refunds likely to face prolonged litigation.
U.S. Treasury Secretary Scott Bessent stated that alternative legal mechanisms could maintain "virtually unchanged" tariff revenue this year, offering cautious reassurance to businesses. Analysts warn of potential market volatility as importers and trading partners await clarity on cross-border trade costs.
The ruling underscores ongoing tensions between executive trade powers and judicial oversight, with implications for Asia-Pacific supply chains and U.S. partnerships in the region.
