US Supreme Court invalidates major Trump-era tariffs, raising global trade uncertainty

On 20 February 2026 the United States Supreme Court ruled that a large portion of the tariffs imposed by former President Donald Trump were illegal. The court focused on duties applied under the International Emergency Economic Powers Act (IEEPA) of 1977, finding the statute does not authorize the president to “regulate imports” through tariffs. The decision also struck down the use of Section 122 of the 1974 Trade Act, a dormant provision that allows temporary tariffs of up to 15% for up to 150 days.

Analyst Julian Marx of Flossbach von Storch noted that the ruling creates “strong uncertainty for global firms” as the legal framework governing US trade becomes a labyrinth. More than 2,000 companies have filed lawsuits seeking refunds of $130‑$175 billion collected under the invalidated duties. The US Treasury had taken in roughly $330 billion in tariff revenue between April 2025 and March 2026; about half of that amount may be withdrawn.

The administration is expected to appeal and may rely on other statutory tools, such as Section 232 (national‑security tariffs) and Section 301 (anti‑unfair‑practice measures), to maintain pressure on trading partners including the European Union, China and Canada. The ruling threatens to reshape the architecture of US trade policy and adds substantial legal risk for importers worldwide.