Supreme Court Ruling Strikes Down Trump-Era Tariffs, Prompting Policy Shift
Washington D.C. – The U.S. Supreme Court on Friday, February 20, 2026, delivered a significant blow to former President Donald Trump’s trade policies, ruling that tariffs imposed on goods from around the world without Congressional approval were illegal. The decision, which has sent ripples through global markets, immediately prompted a response from the Trump administration in the form of a new 10% global tax decree, according to reports from TV5Monde.
The ruling centers on tariffs enacted during Trump’s second term, justified under the International Emergency Economic Powers Act (IEEPA). The Court, in a 6-3 decision, determined that a president cannot unilaterally impose tariffs based on a claim of national economic emergency without the consent of Congress. This decision resolves a key institutional question that has been closely watched by businesses and international trade partners, as detailed in reporting by Le Monde.
Since returning to the White House, Trump had implemented a series of tariffs targeting countries including Canada, Mexico, and China, often describing tariffs as “the most lovely word in the dictionary.” These measures led to widespread concern and legal challenges from both domestic companies and international entities. The Supreme Court’s decision effectively invalidates a core component of his economic strategy.
The ruling has sparked immediate reactions. J.D. Vance reportedly denounced the Court’s decision as “illegal,” while businesses and states that had previously challenged the tariffs are now seeking reimbursement for payments made, as Le Figaro reports. The decision underscores the ongoing tension between presidential authority and Congressional oversight in trade policy.
In response to the Supreme Court’s ruling, President Trump issued a decree enacting a new global tax of 10%. This move suggests the administration intends to maintain a protectionist stance despite the legal setback. France has called for a “unified response” from the European Union following Trump’s announcement of increased tariffs, according to Le Monde.
The CAC 40 in Paris experienced a surge, exceeding 8,500 points, fueled by the Supreme Court’s decision and its positive impact on luxury goods and Air Liquide, as reported by BFM Bourse. This market reaction highlights the significance of the ruling for international trade and investment.
