President Donald Trump on Friday vowed to impose a 10% global tariff on all imported goods, hours after the Supreme Court struck down his previous attempts to levy sweeping tariffs on imports from Canada, China, and Mexico, as well as a broader “reciprocal” tariff applying to nearly all countries.
The 6-3 ruling, delivered February 20, 2026, found that the tariffs exceeded the authority granted to the president under the 1977 International Emergency Economic Powers Act (IEEPA). The court determined that IEEPA does not authorize the president to impose tariffs, a power reserved for Congress. Chief Justice John Roberts, writing for the majority, stated that the law “contains no reference to tariffs or duties,” and that no president had previously interpreted it to grant such power.
The decision represents a significant defeat for Trump, whose economic agenda heavily relied on the use of tariffs as a negotiating tactic and a means of protecting domestic industries. The initial tariffs, imposed through a series of executive orders, were justified by the administration as necessary to address issues such as the influx of fentanyl from Canada and Mexico, and to counter what Trump characterized as unfair trade practices by other nations. The “reciprocal tariffs” were intended to mirror tariffs imposed by other countries on U.S. Goods.
Following the Supreme Court’s decision, Trump addressed reporters at the White House, expressing his “absolute shame” at the justices who ruled against him, calling the decision “deeply disappointing.” He then announced his intention to sign an executive order imposing the latest 10% global tariff under Section 122 of federal law, a separate legal authority. He also indicated that he was exploring additional tariff measures through other avenues.
The legal challenge to Trump’s tariffs originated in two cases brought before the court: Learning Resources v. Trump, and Trump v. V.O.S. Selections. The cases were consolidated and fast-tracked for review, with oral arguments held in early November 2025. Learning Resources involved small businesses seeking to challenge the tariffs directly, although Trump v. V.O.S. Selections was an appeal by the Trump administration of a lower court ruling that struck down the tariffs.
The ruling throws U.S. Trade policy into uncertainty, as the new 10% tariff is likely to face legal challenges of its own. Experts suggest that the legality of the Section 122 tariff will hinge on whether it can be justified under the specific provisions of that law. The Council on Foreign Relations noted that the Supreme Court’s decision underscores the constitutional principle that tariff power resides with Congress, and any presidential imposition of tariffs requires clear congressional delegation of authority.
The Supreme Court’s decision comes after a period of escalating trade tensions under the Trump administration. The initial tariffs sparked retaliatory measures from other countries, disrupting global supply chains and raising costs for consumers and businesses. The ruling is expected to have a significant impact on international trade relations, and the administration’s next steps remain unclear.
