Tariff Ruling Major Blow to Economic Agenda [Video]

On Friday, Feb. 20, 2026, the U.S. Supreme Court delivered a major blow to President Donald Trump’s tariffs and economic agenda.

After the Supreme Court ruled Trump exceeded his authority by imposing import taxes on most of the nation’s trading partners, he called the six judges who ruled against him “fools and lap dogs.” Then he announced a new 10 percent global tariff will begin Tuesday within hours of the ruling.

Supreme Court Tariff Decision

The landmark ruling invalidated many of the import taxes imposed by Trump was a wide swing with constitutional, economic, and political ramifications that drew a scathing response from the president.

In most cases thud far, the Supreme Court justices have sided with the president. However, Trump’s response to the ruling did not seem to recognize previous decisions in his favor. “What happened today never seems to happen with Democrats. They vote against the Republicans, and never against themselves, almost every single time, no matter how good a case we have. At least I didn’t appoint Roberts.”

Chief Justice John G. Roberts Jr. wrote the the ruling and was appointed by President George W. Bush.

Economists say it is unlikely the ruling will bring costs down right away, and possibly not at all, according to The New York Times. Additionally, Trump has already moved to impose tariffs through alternative legal authorities.

Before the ruling from the Supreme Court, the import taxes were expected to raise $3 trillion in revenue over the next nine years, according to the Congressional Budget Office. The tariffs thrown out were responsible for half of that revenue, according to economists with the Yale Budget Lab.

Tariff Refunds

Lower courts and the U.S. Court of International Trade will initiate the refund process of more than $100 billion in revenue, which will be carried out by Customs and Border Protection and the Treasury Department.

Only importers who paid the import tax are directly eligible for refunds, however, businesses that absorbed the costs can seek reimbursement through lawsuits. It is not clear how or if consumers can be compensated for paying higher prices.

10% Tariff on All Countries

In a post on Truth Social, Trump wrote: “It is my Great Honor to have just signed, from the Oval Office, a Global 10% Tariff on all Countries, which will be effective almost immediately.”

The tax is being enacted under Section 122 of the 1974 Trade Act which allows for up to a 15 percent import duty for 150 days to address “large and serious” trade deficits. This will go into effect at 12:01 a.m. Feb. 24.

During a press conference held at the White House hours after the Supreme Court read the ruling, Trump stated, “Their decision’s incorrect. But it doesn’t matter, because we have very powerful alternatives that have been approved by this decision.”

On Truth Social, the president wrote: “Those members of the Supreme Court who voted against our very acceptable and proper method of TARIFFS should be ashamed of themselves. Their decision was ridiculous but, now the adjustment process begins, and we will do everything possible to take in even more money that we were taking in before.”

Sources:

BBC: Trump lashes out at Supreme Court justices over tariffs ruling
The Hill: Trump to impose new 10 percent tariff on all countries after Supreme Court decision
The New York Times: Trump Tariffs Live Updates: After Supreme Court Ruling, Trump Plans a Tariff

Featured Image Courtesy of Todd Lappin’s Flickr Page – Creative Commons License