Trump Proposes 10% Tariff Following Supreme Court Setback

Feb 20, 2026

81 min

Feb 20, 2026 23:30

Trump vows 10% global tariff after stinging Supreme Court rebuke

## Supreme Court Ruling

The U.S. Supreme Court recently ruled against President Donald Trump's use of emergency powers to impose international trade tariffs. The decision, made by a conservative-majority court, found that the 1977 International Emergency Economic Powers Act does not permit the president to set tariffs unilaterally. This ruling struck down a key element of Trump's economic strategy.

## Trump's Response

In response to the court's decision, Trump announced plans to implement a new 10% tariff on all imports into the United States. He claimed that the ruling actually increased his power and vowed to use a different authority to enforce the tariff. Trump expressed disappointment with the court, alleging without evidence that foreign influences affected the decision.

## Economic and Political Reactions

Business groups, including the National Retail Federation, welcomed the court's decision, citing it as a source of stability for American businesses. However, the issue of refunding tariffs to importers remains unresolved and could lead to further legal challenges. Economists estimate that the loss of tariff revenue could cost the U.S. government around $140 billion.

Democratic leaders celebrated the ruling, with Senate Minority Leader Chuck Schumer calling it a victory for consumers. However, concerns remain about the lack of a legal mechanism for consumers and small businesses to recover previously paid tariffs.

## International and Domestic Implications

The European Union and the United Kingdom are reviewing the ruling's impact on trade relations with the U.S. Canada described the decision as a confirmation that Trump's tariffs were unjustified. Meanwhile, California Governor Gavin Newsom demanded refunds for Americans, labeling the tariffs as an illegal financial burden.

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