President Donald Trump on Friday imposed a new 10% global tariff, hours after the Supreme Court invalidated most of his prior tariffs in a 6-3 decision. The ruling, delivered on February 20, 2026, found that Trump had exceeded his authority under the International Emergency Economic Powers Act (IEEPA) when he unilaterally imposed the duties.
The court’s decision stems from challenges to tariffs initially levied on goods from Mexico, Canada, and China, which were later expanded to include dozens of trade partners in April of the previous year – an action the White House had dubbed “Liberation Day.” Businesses and U.S. States had argued the tariffs were unlawful, potentially opening the door to billions of dollars in refunds.
“We have alternatives – great alternatives and we’ll be a lot stronger for it,” Trump stated from the White House following the court’s ruling, signaling his intent to pursue other legal avenues to maintain trade protections. He also dismissed the justices who rejected his trade policy as “fools” and characterized the decision as “terrible.”
Chief Justice John Roberts, writing for the majority, asserted that the president requires “clear congressional authorization” to impose tariffs of such broad scope. The ruling did not address the fate of the more than $130 billion in tariffs already collected, leaving that issue unresolved.
The case, Learning Resources, Inc. V. Trump (24-1287), centered on the interpretation of IEEPA, a 1977 law granting the president power to regulate trade in response to a national emergency. The court held that the law does not authorize the president to impose tariffs as a general economic measure.
The White House indicated it anticipates legal challenges regarding tariff refunds, suggesting a protracted legal battle. The Supreme Court’s decision represents a significant setback for the Trump administration’s trade agenda and a major victory for those who opposed the tariffs.
On February 2, 2026, President Trump announced plans to launch a $12 billion critical minerals stockpile, framing it as an effort to aid manufacturers and reduce reliance on Chinese rare earths. This initiative occurred amidst the ongoing legal challenges to his broader tariff policies.
