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Supreme Court Deals Trump a 50bn Blow on Tariffs – London Business News | London Wallet

Philip Roth by Philip Roth
February 20, 2026
in UK
Supreme Court Deals Trump a 50bn Blow on Tariffs – London Business News | London Wallet
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The Supreme Court of the United States has invalidated President Donald Trump’s sweeping global tariffs, a decision that could lead to the return of $150 billion and significantly alter U.S. trade policy.

In a 6–3 decision, America’s highest court ruled that the law used to justify the tariffs “does not authorise the President to impose tariffs.”

Chief Justice John Roberts delivered the majority opinion, stunning the White House and upending one of Trump’s flagship economic weapons.

Just hours before the ruling, Trump posted on Truth Social, “If the Supreme Court rules against the United States of America on this National Security bonanza, we’re screwed.”

Now, his so-called “reciprocal” tariffs — including rates of up to 34% on China and a 10% baseline on much of the world — have been struck down.

Importers who paid the tariffs could now demand repayment, potentially costing the U.S. Treasury up to $150 billion and affecting government finances.

In a fiery dissent, Justice Brett Kavanaugh warned, “The Court says nothing today about whether, and if so how, the Government should go about returning the billions of dollars that it has collected.”

Justices Clarence Thomas and Samuel Alito joined him in dissent.

Not all tariffs are gone. Steel and aluminium duties imposed under separate laws remain in force — including those that hit the UK and other allies.

But the ruling guts Trump’s sweeping country-by-country trade offensive and deals a dramatic legal rebuke to his use of emergency powers.

The White House may now seek alternative legal routes to reimpose tariffs, which could lead to further legal discussions and keep policymakers engaged in the process.

For now, though, one thing is clear: The Supreme Court has clipped Trump’s tariff wings.



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