Breaking News: Supreme Court Strikes Down Trump’s Sweeping Tariffs, Are Refunds on the Way?

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Tonernews.com, February 20, 2026. USA
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    Breaking News: Supreme Court Shocks Nation, Strikes Down Trump’s Tariffs, Major Economic Setback

    WASHINGTON — In a stunning decision, the U.S. Supreme Court struck down President Donald Trump’s controversial tariffs on Friday, effectively dismantling one of the central pillars of his economic agenda. The 6-3 ruling, which comes as a blow to Trump’s legacy, centers on his use of emergency powers to impose sweeping tariffs on nearly every major trading partner.

    The tariffs, imposed in 2025 under a rarely invoked emergency powers law, were part of Trump’s aggressive “reciprocal” trade strategy aimed at addressing trade imbalances and what he called national security threats. However, in a decision that has sent shockwaves through Washington, the Court ruled that the Constitution grants Congress, not the President, the power to impose taxes, including tariffs. Chief Justice John Roberts, writing for the majority, made it clear: “The Framers did not vest any part of the taxing power in the Executive Branch.”

    The ruling is a direct rebuke to Trump’s expansive view of presidential power, dealing a serious blow to his claims that emergency powers can be stretched to cover trade tariffs. Trump has long argued that these tariffs were necessary to protect American workers, but critics have said they have only served to inflate prices for consumers and disrupt global trade. The economic fallout is projected to reach as high as $3 trillion over the next decade, according to the Congressional Budget Office.

    In a fiery dissent, Justices Samuel Alito, Clarence Thomas, and Brett Kavanaugh slammed the majority opinion, with Kavanaugh accusing the Court of overstepping by “second-guessing” the president’s policy decisions. “The tariffs at issue here may or may not be wise policy. But as a matter of text, history, and precedent, they are clearly lawful,” Kavanaugh wrote, doubling down on the argument that the President had the right to act unilaterally during an emergency.

    The decision also raises pressing questions about the billions in tariff payments already collected from American businesses. While the majority didn’t address whether companies like Costco, who are suing for refunds, can reclaim their funds, Kavanaugh warned that any attempt to return the money could create a legal “mess.”

    This ruling is the latest in a string of high-profile defeats for Trump in the courts, especially after the Supreme Court has largely upheld more limited uses of executive power under his administration. It underscores the deepening divide between Trump’s vision of executive authority and the Court’s interpretation of constitutional limits.

    Trump, who has repeatedly called the tariffs a matter of “national survival,” has yet to respond to the ruling, but allies are already signaling plans for further legal challenges. Some are speculating that Trump could find new legal grounds to continue his trade war with China, Canada, and other key nations, though those options appear more limited in scope.

    Legal and business analysts are already forecasting a turbulent fallout. Some major industries, including agriculture and manufacturing, are bracing for a return to a more open trade environment, but the long-term economic impact remains uncertain. One thing is clear: Friday’s decision represents a seismic shift in U.S. trade policy and a sharp rebuke of the Trump administration’s legacy of executive overreach. With the ruling likely to be a focal point in future elections, this is far from the last word on the political and economic ramifications of Trump’s tariff strategy.

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