The Supreme Court of America on Friday (February 20, 2026) has given a big blow to President Donald Trump. The Supreme Court has canceled the tariffs imposed by Trump on other countries, calling them illegal. The court said in its decision that Trump had violated his jurisdiction while imposing tariffs on so many countries. The decision said that Trump had imposed tariffs under a law made for use in national emergencies.

This 6-3 decision of the court will have far-reaching effects on the American economy, consumers and the President’s trade policy. The Trump administration had said that in case of defeat in the Supreme Court, the government may have to withdraw trade agreements made with other countries and may also have to give huge refunds to importers.

Parliament, not the President, has the right to impose tariffs: US Supreme Court

Trump is the first president to claim to impose tariffs unilaterally without Congressional approval, citing an emergency law from the 1970s that does not mention the word ‘tariff’ anywhere. Writing the decision on behalf of the majority, Chief Justice John G. Roberts Jr. said that this law does not give the President the authority to impose tariffs.

The Chief Justice wrote, ‘The President claims extraordinary power to impose unilateral tariffs of unlimited quantity, duration and scope. “Given the breadth, history, and constitutional context of this claim, they will have to show express permission from Congress to use it.”

Justices Clarence Thomas, Samuel A. Alito Jr. and Brett M. Kavanaugh disagreed with this decision.