The Journal. Trump's Tariffs Are Illegal. He's Got a Plan B.
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Feb 20, 2026 
Gavin Bade, a Wall Street Journal reporter who covers trade and tariffs, breaks down the Supreme Court's 6-3 decision striking down broad global tariffs and what it means legally and economically. He walks through which tariffs survive, how the administration might try Section 122 or Section 301 next, and what could happen to collected tariff funds and future trade policy.
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Court Limits Executive Tariff Power
- The Supreme Court ruled Trump's broad use of the International Emergency Economic Powers Act to impose tariffs was unlawful.
- The Court said imposing tariffs is a power that Congress must clearly grant, limiting executive emergency tariff authority.
Tariffs Raised Revenue But Hurt Businesses
- Trump's IEPA tariffs raised roughly $250 billion but increased costs for U.S. businesses and consumers.
- The tariffs did not bring a manufacturing resurgence and the U.S. still lost manufacturing jobs despite higher import levies.
Imports Shifted, Not Stopped
- Tariffs changed sourcing patterns rather than stopping imports, with U.S. buyers shifting from China to other countries.
- That supply-chain switching limited the tariffs' ability to shrink the overall trade deficit.