President Donald Trump’s economic agenda took a major hit when the Supreme Court struck down many of his most sweeping tariffs. While Trump has options to restore some of the tariffs, he’s losing his most powerful tool to impose them almost at will as a bargaining chip with other countries.
In a 6-3 decision on Feb. 20, 2026, the court ruled that Trump’s use of the International Emergency Economic Powers Act of 1977 to unilaterally impose tariffs on other countries was unconstitutional. Since January 2025, Trump has used the act to impose tariffs on nearly every other country.
