US Supreme Court Declares Trump's 'Liberation Day' Tariffs Illegal in Landmark Ruling
The US Supreme Court has delivered a historic decision, striking down the sweeping tariffs imposed by President Donald Trump on trading partners last year as illegal. The ruling, handed down on Friday, February 20, 2026, centers on the Emergency Economic Powers Act, which permits a President to regulate imports during a national emergency.
Legal Battle Over Presidential Authority
Justices weighed a case that challenged the legality of Trump's 'Liberation Day' levies, which were implemented without clear limits on scope or duration. The White House had argued that the Emergency Economic Powers Act authorized these actions, but the Supreme Court, with its 6-3 Conservative majority, rejected this interpretation.
The court found that the tariffs exceeded the statutory authority granted by the act, marking a significant check on presidential power in trade matters. This decision underscores the judiciary's role in interpreting economic regulations during emergencies.
Potential Financial and Trade Implications
This ruling could pose major financial consequences for the Trump administration, as it may require unwinding the tariffs and addressing related trade disruptions. President Trump had previously warned that losing the case would create a "complete mess" and force the US to "unwind" existing trade deals.
The outcome highlights ongoing tensions between executive authority and legal constraints in international trade policy. As a breaking story, further developments are expected to unfold, potentially impacting global economic relations and domestic political dynamics.
