Dollar Declines as Supreme Court Limits Trump’s Tariff Powers

The dollar fell on Monday, February 23, 2026, as traders reacted to the U.S. Supreme Court’s decision to strike down most of President Donald Trump’s tariffs. The ruling is expected to support global growth, though some uncertainty remains regarding the future of U.S. Trade policy.

Supreme Court Ruling on Trump Tariffs

On Friday, February 20, 2026, the Supreme Court ruled that President Trump did not have the authority to impose sweeping tariffs using the International Emergency Economic Powers Act (IEEPA). The 6-3 decision found that IEEPA does not grant the president the power to impose tariffs, as the law does not use terms like “tariff,” “duty,” or “levy.” CBS News reports that the ruling included a coalition of liberal and conservative justices, with Chief Justice John Roberts delivering the opinion.

Trump’s Use of IEEPA and the Court’s Concerns

President Trump had declared a national emergency over the country’s trade deficit, invoking IEEPA to enact most of his tariffs. His administration had projected that these tariffs would add over $2 trillion to the federal budget over the next decade, encourage domestic manufacturing, and reduce the national debt. However, the Court found that allowing a president to impose “unbounded tariffs” based on a declaration of emergency would represent a “transformative expansion” of presidential authority. CNBC highlights that the ruling emphasized the constitutional power of Congress to tax.

Trump’s Response and New Tariffs

Despite the ruling, President Trump stated at a news conference on Friday that all tariffs remain in place, citing other legal authorities. He also announced a new 10% global tariff, aiming to generate additional revenue. USA Today reported on this development.

Impact on the Dollar and Markets

The dollar dipped as traders interpreted the Supreme Court’s decision as positive for global growth. Reuters noted that stock futures also experienced a decline amid the uncertainty surrounding the new tariffs. The ruling raises questions about whether the U.S. Will need to refund money collected through the invalidated tariffs.

Key Takeaways

• The Supreme Court struck down most of President Trump’s tariffs, ruling that he lacked the authority to impose them under IEEPA.
• President Trump has announced a new 10% global tariff despite the ruling.
• The dollar declined following the Supreme Court’s decision, as traders anticipate a more favorable global economic outlook.