Trump Tariffs Clash with Congress & Supreme Court: New Taxes Loom

by Marcus Liu - Business Editor
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Supreme Court Strikes Down Trump Tariffs, President Vows New Measures

WASHINGTON – A landmark Supreme Court decision on February 20, 2026, struck down President Donald Trump’s sweeping tariff agenda, a significant blow to his economic policy. Despite the ruling, President Trump has signaled his intent to implement new tariffs, escalating tensions with Congress.

Supreme Court Ruling

In a 6-3 decision, the Supreme Court determined that President Trump’s global levies were unlawfully imposed under the International Emergency Economic Powers Act (IEEPA) of 1977. Chief Justice John Roberts, writing for the majority, stated that the president requires “clear congressional authorization” to impose tariffs of “unlimited amount, duration, and scope.”

The ruling saw an unexpected alignment of justices, with Conservative Justices Neil Gorsuch and Amy Coney Barrett joining Roberts, along with Liberal Justices Sonia Sotomayor, Elena Kagan, and Ketanji Brown Jackson. Justices Clarence Thomas, Samuel Alito, and Brett Kavanaugh dissented, backing Trump’s tariffs.

Trump’s Response and New Tariffs

President Trump immediately denounced the decision as “incorrect” and expressed “shame” towards the justices who ruled against him. He announced plans to circumvent the ruling by imposing a new global import tax of 10%, which was subsequently raised to 15% on Saturday, February 22, 2026.

Trump is invoking the Trade Act of 1974, which grants the president the power to impose temporary tariffs when there are “large and serious deficits in the balance of payments of the United States” or other international payment issues. This provision has never been used in this manner and its legality remains untested.

Congressional Reaction

The Supreme Court’s initial decision was met with cautious relief from some Republicans, with party leaders indicating a willingness to collaborate with the President on tariff policy. However, Trump’s subsequent announcement of new tariffs quickly dissolved any prospect of cooperation.

Senator Mitch McConnell criticized the tariffs, stating they “raise home prices and disrupt other industries.” Representative Don Bacon celebrated the Supreme Court’s decision and urged Congress to “defend its own principles.”

Trump responded to opposition within his own party, withdrawing his support for Colorado Representative Jeff Hurd after Hurd criticized the tariffs. He endorsed Hurd’s Republican primary rival, Hope Scheppelman, on his Truth Social platform.

Democratic Strategy

Democrats are capitalizing on the situation, framing Trump’s tariffs as a contributor to the rising cost of living. Senate Democratic leader Chuck Schumer challenged Republicans to prevent Trump from implementing the new tariffs. Senator Elizabeth Warren called for refunds to American consumers for tariffs previously struck down by the Court.

The JPMorganChase Institute has found that midsize U.S. Companies have been absorbing import taxes by increasing prices for customers, reducing their workforce, or accepting lower profits.

Looking Ahead

The Supreme Court’s ruling underscores the constitutional authority of Congress over tariff policy. However, President Trump’s willingness to utilize the Trade Act of 1974 sets the stage for a potential legal battle and continued economic uncertainty. The issue is likely to remain a central point of contention as the midterm elections approach, with both parties seeking to leverage the situation to their advantage.

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