Supreme Court Stops Trump Tariffs on Mexico, China, Canada from February 20, 2026

The Supreme Court stopped President Trump's tariffs on Mexico, China, and Canada. This is a big change from his past trade plans.
By Newsroom | Law, Trade |

A Major Shift in Trade Policy and Presidential Power

The United States Supreme Court has delivered a significant blow to President Donald Trump's economic agenda, ruling that his administration lacked the legal authority to impose broad tariffs under the International Emergency Economic Powers Act (IEEPA). This decision, a major setback for the President, underscores the ongoing debate about the limits of executive power in shaping trade policy. The ruling has prompted Mexico to adopt a cautious stance, with its economy secretary planning a visit to the U.S. to seek clarity.

Supreme Court ruling against Trump's tariffs leaves Mexico in cautious wait-and-see mode - 1

The Ruling and Its Foundation

On Friday, the Supreme Court announced its decision, stating that the President cannot unilaterally impose tariffs on foreign goods using the IEEPA. The court upheld previous rulings from lower federal courts, including the U.S. Court of Appeals for the Federal Circuit, which had also found these tariffs to be illegal. The majority opinion, authored by Chief Justice John Roberts, was a 6-3 decision.

Read More: Supreme Court Blocks Trump Tariffs Under Special Law

Supreme Court ruling against Trump's tariffs leaves Mexico in cautious wait-and-see mode - 2

  • The court found that the IEEPA does not grant the President the authority to impose tariffs.

  • This decision limits the President's ability to enact sweeping tariffs across numerous countries without direct congressional involvement.

  • The ruling is seen as a significant rebuke of the President's signature economic policy, which heavily relied on tariffs as a tool to reshape global trade.

Mexico's Cautious Response

Mexico's economy secretary, Marcelo Ebrard, has urged a measured approach following the Supreme Court's ruling. While acknowledging the decision, he emphasized the need for caution and plans to visit the United States to gain a clearer understanding of the implications.

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  • The ruling specifically voided what were referred to as "fentanyl tariffs" imposed on Mexico, China, and Canada.

  • Mexico has previously expressed opposition to other tariffs imposed by the Trump administration, including those on vehicles, steel, and aluminum.

  • Ebrard's upcoming visit is intended to clarify the situation and its impact on trade relations.

The Broader Impact on Trump's Economic Policy

The Supreme Court's decision represents a substantial loss for President Trump, who had made tariffs a central feature of his presidency. The administration had argued that existing law empowered the President to impose these levies on any country, at any time, without needing approval from Congress.

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  • Tariffs have been a cornerstone of Trump's economic strategy in his second term.

  • The ruling prevents the President from using the IEEPA as his primary tool for enacting such measures.

  • Despite this loss, the administration still has other legal avenues to impose tariffs, such as under Section 301 of the 1974 Trade Act or Section 232 of the 1962 Trade Expansion Act, which relate to trade agreement violations and national security, respectively.

The Supreme Court's judgment has sparked significant reactions, including a strong response from President Trump himself, who reportedly launched a furious attack on the court he helped to shape. The decision validates the arguments of those who contended that the President had overstepped his authority.

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  • The tariffs had led to fluctuations and uncertainty in the global economy, prompting legal challenges from businesses.

  • The Supreme Court's decision reinforces the idea that Congress holds the primary authority over imposing tariffs according to the Constitution.

  • Some lawmakers, including certain Republicans, had previously rebuked the President's tariffs, suggesting a division in political support for the policy.

Looking Ahead: Continued Trade Scrutiny

While the Supreme Court's ruling has struck down a significant portion of President Trump's tariff strategy, the future of trade policy remains a subject of ongoing development. The administration's ability to enact tariffs through other legislative means suggests that trade disputes and adjustments are likely to continue.

  • The "zombie tariffs" concept highlights the possibility of reintroducing or modifying tariffs through different legal frameworks.

  • The core of the tariff power, for Trump, is seen as more than just the tariffs themselves, but as a tool for broader economic and political leverage.

  • The Supreme Court's decision does not prevent the administration from pursuing new tariff strategies under different existing laws.

Sources

Frequently Asked Questions

Q: Why did the Supreme Court stop President Trump's tariffs on February 20, 2026?
The Supreme Court decided on February 20, 2026, that President Trump did not have the legal power to put tariffs on goods from Mexico, China, and Canada using a specific law called IEEPA. This means those tariffs are no longer in place.
Q: Who is affected by the Supreme Court's decision on tariffs?
This decision affects businesses and consumers who buy goods from Mexico, China, and Canada, as the tariffs that increased prices are now gone. It also affects President Trump's ability to use this specific law to set trade rules.
Q: What does Mexico's economy secretary plan to do after the ruling?
Mexico's economy secretary, Marcelo Ebrard, plans to visit the United States to understand exactly how this Supreme Court decision will change trade rules between the two countries. He wants to make sure trade continues smoothly.
Q: Can President Trump still use tariffs to change trade rules?
Yes, the Supreme Court's ruling only stopped tariffs made under the IEEPA law. President Trump can still try to use other laws, like those related to national security or trade violations, to put tariffs on goods if he chooses.
Q: What does this ruling mean for President Trump's economic plan?
This ruling is a major setback for President Trump's plan to use tariffs as a main tool to change trade. It shows that Congress has more power over trade rules than the President when using certain laws.