A Major decision by the Supreme court of the the United States has changed former President Donald Trump’s trade plans.
So what has Happened?
During his presidency , Trump used the International Emergency Economic Powers Act ( IEEPA) To impose broad global tariffs.
Critics argued he went beyond his authority.Because congress , not the president controls trade policy.
On February 20,2026,
The Supreme Court rules that IEEPA does not allow a president to impose wide, peacetime global tariffs. This decision cancels much or Trump’s earlier tariff framework and could lead to large refund claims from imposters.
Now,
Trump responded by announcing a temporary 10% global tariff under a different law ( Sec 122 of the Trade Act of 1974)
Which allows short term tariffs for up to 150 days.
Other tariffs, like national security tariffs on steel and aluminum, are not affected.
This Matters because the ruling limits presidential power over trade and strengthen Congress's role. While some businesses may benefit from lower costs, and policy uncertainty remains.