WORLD

US SUPREME COURT STRIKES DOWN TRUMP'S SWEEPING "RECIPROCAL" TARIFFS

21/02/2026 06:37 AM

WASHINGTON, Feb 21 (Bernama-Kyodo) -- The US Supreme Court on Friday struck down President Donald Trump's so-called reciprocal tariffs targeting nearly all of America's trading partners, dealing his signature economic policy a major blow that is likely to complicate Washington's relations with the rest of the world, Kyodo News reported.

Upholding lower court findings, the highest court ruled that Trump overstepped his presidential powers when he used a 1970s-era emergency law last year to impose the sweeping global tariffs, as well as fentanyl-related duties he applied to goods from China, Canada and Mexico.

Trump said the ruling is "deeply disappointing," claiming it is "incorrect."

"I'm ashamed of certain members of the court, absolutely ashamed for not having the courage to do what's right for our country," Trump told reporters.

Trump said foreign countries must be "so happy, and they're dancing in the streets, but they won't be dancing for long -- that I can assure you." He said his administration has "very powerful alternatives" going forward.

Trump added that he will sign an order imposing a new 10 per cent global tariff under a different law.

Last year, he invoked the 1977 International Emergency Economic Powers Act to swiftly bring the tariffs into effect without congressional approval, although taxation is an enumerated power of the legislative branch.

During oral arguments in early November, a majority of the court's nine justices, six of whom were appointed by Republican presidents, already appeared skeptical of Trump's authority to bypass Congress in levying the double-digit tariffs.

The final 6-3 judgment will likely have profound implications for his economic and foreign policy objectives, as well as for governments and businesses worldwide.

Chief Justice John Roberts, a conservative appointed by President George W. Bush, said Trump could not legally justify his extraordinary action.

"The president asserts the extraordinary power to unilaterally impose tariffs of unlimited amount, duration, and scope. In light of the breadth, history, and constitutional context of that asserted authority, he must identify clear congressional authorisation to exercise it," Roberts wrote for the majority.

Tariffs are the centerpiece of Trump's "America First" agenda. The Republican president has argued they will revitalise US manufacturing, create jobs, reduce the country's debt, raise tax revenue and equip the United States with more negotiating leverage to extract concessions from other countries.

In the early months of last year, the Trump administration introduced the tariffs on goods from China, Canada and Mexico, accusing the top three US trading partners of not doing enough to stem the flood of deadly fentanyl coming into the United States.

In April, Trump announced "Liberation Day" tariffs, which consist of a 10 per cent universal tariff, plus varying additional duties on dozens of countries with which the United States runs significant trade deficits.

The emergency law, known as IEEPA, stipulates that it can be exercised "to deal with any unusual and extraordinary threat, which has its source in whole or substantial part outside the United States, to the national security, foreign policy, or economy."

No president had previously used the law to impose tariffs, with countless US and foreign companies suing the Trump administration to challenge the legality of the IEEPA-based measures and to ensure they receive refunds should the Supreme Court invalidate them.

The Supreme Court did not say whether the US government must refund revenue collected from the import taxes.

Senior Trump administration officials had suggested they would resort to alternative legislation to reimpose those tariffs in the event of the top court ruling against the president.

The legal battle over the global tariffs, launched by small businesses and a dozen US states, is unrelated to the Trump administration's sectoral tariffs.

The sector-specific tariffs Trump has levied on national security grounds since his return to office in January last year, such as those targeting car and steel imports, are authorised under Section 232 of the Trade Expansion Act of 1962.

The law requires an investigation before tariffs can be imposed.

-- BERNAMA-KYODO

© 2026 BERNAMA   • Disclaimer   • Privacy Policy   • Security Policy