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trade war 2026

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Developing: Supreme Court Strikes Down Trump Tariffs

The US Supreme Court on Friday delivered a landmark ruling that struck down the bulk of President Donald Trump's sweeping global tariffs, declaring that the International Emergency Economic Powers Act (IEEPA) did not authorise the president to impose the levies. The decision invalidated tariffs announced on "Liberation Day" last April that had reshaped global trade flows and prompted months of negotiations between Washington and its trading partners. Trump responded within hours by announcing a new 10% global tariff under a different law — Section 122 of the 1974 Trade Act — which he quickly raised to 15% on Saturday. The new duties, set to take effect on Tuesday, February 24, have thrown previously negotiated trade deals into disarray. The S&P 500 fell approximately 1% on Monday as markets digested the uncertainty, with the SPDR S&P 500 ETF Trust (SPY) closing at $682.41, down $7.02 on the day. Countries from the European Union to India are now re-evaluating their trade agreements with the United States, while the UK and other allies that had negotiated favourable 10% rates find themselves potentially worse off under the new blanket 15% levy.

Trump tariffsSupreme Court tariffs rulingtrade war 2026

News: Supreme Court Strikes Down Trump's Tariffs in

The United States Supreme Court delivered a historic rebuke to President Donald Trump's trade agenda on Friday, ruling 6-3 that his sweeping global tariffs imposed under the International Emergency Economic Powers Act (IEEPA) were unconstitutional. The decision, authored by Chief Justice John Roberts and joined by two Trump-appointed justices, found that the president had overstepped his authority by imposing import duties without explicit congressional authorization — a power the Constitution reserves for the legislative branch. Hours after the ruling, a visibly agitated Trump held a White House press conference in which he called the decision "terrible" and said he was "absolutely ashamed" of the justices who voted against him, including his own appointees Neil Gorsuch and Amy Coney Barrett, whom he labeled "fools and lapdogs." He then signed a proclamation imposing a new 10% global tariff under Section 122 of the Trade Act of 1974 — a never-before-used provision that limits duties to 15% for a maximum of 150 days. The ruling opens the door to potentially $175 billion in refunds to importers who paid the now-invalidated tariffs, according to an estimate by the Penn Wharton Budget Model, and introduces fresh uncertainty into a global trade landscape that has been roiled by over a year of escalating tariff wars. Markets reacted with cautious optimism, with the S&P 500 closing up approximately 0.7%, even as businesses warned that the path forward remains far from clear.

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