EditU.S. Supreme Court invalidates Trump’s tariffs: a win for free trade with thorny implications for EU
The Turnberry EU's concessions - such as zero tariffs on U.S. aircraft, semiconductors, and farm goods - may persist without reciprocal U.S. relief, exacerbating imbalances
In a landmark decision on February 20, 2026, the US Supreme Court struck down President Donald Trump’s sweeping tariffs on global imports, ruling that his use of the International Emergency Economic Powers Act (IEEPA) exceeded presidential authority.
The 170-page opinion, authored by Chief Justice John Roberts, reaffirmed Congress’s exclusive constitutional power over tariffs under Article I, Section 8, declaring that IEEPA – intended for emergencies like sanctions – does not permit peacetime duties without explicit legislative approval.
This ruling, which originated from lawsuits by businesses and states challenging tariffs justified by trade deficits and fentanyl crises, has immediate repercussions for US trade policy and resonates strongly across the Atlantic, where the European Union has navigated a precarious détente with the Trump administration.
The case consolidated challenges from entities like toy company Learning Resources and wine distributor V.O.S. Selections, alongside 12 Democratic-led states.
Lower courts had already deemed the tariffs unlawful, and the Supreme Court’s affirmation limits executive overreach, though it leaves room for refunds of billions collected – a process dissenters warned could be a “mess.”
The vote saw a majority backing Roberts, with conservative Justices Brett Kavanaugh, Clarence Thomas, and Samuel Alito dissenting. Kavanaugh argued that tariffs align with IEEPA’s historical use for regulating imports, like quotas, and stressed their lawfulness despite policy debates.
Reactions in the US were polarized. Trump, informed during a White House meeting with governors, labelled the ruling a “disgrace” and hinted at alternative strategies, vowing a “game two” plan.
Democrats celebrated: Representative Brendan Boyle called it a “victory for every American family” burdened by higher prices, while activist Melissa Morales decried Trump’s “unhinged economic sabotage.”
Republicans, like Representative John Moolenaar, pledged legislative action, such as 25-100% tariffs on China for national security.
Business groups, including a coalition of 800 small firms, demanded swift refunds, with the Distilled Spirits Council urging “zero-for-zero” tariffs with the EU.
Economists noted minimal short-term market shifts but flagged uncertainties in trillion-dollar deals with allies like the UK and Japan.
From an EU perspective, the ruling offers cautious relief amid ongoing trade frictions. The bloc, a major target of Trump’s “Liberation Day” tariffs, has advocated for stability and low duties, with officials analyzing the decision’s effects.
However, it complicates the fragile equilibrium struck in July 2025 at Trump’s Turnberry golf course in Scotland, where European Commission President Ursula von der Leyen negotiated a deal capping US tariffs on most EU goods at 15% – down from a threatened 30% – in exchange for EU investments in the U.S., buying an average of about $250 billion per year of U.S. LNG, and zero tariffs on certain U.S. imports to Europe.
Steel and aluminium faced steeper 50% duties, carved out separately, leading to a 30% drop in EU steel exports to the US by early 2026.
The Turnberry agreement, hailed by Trump as the “biggest deal ever” and by von der Leyen as providing “crucial stability,” drew sharp criticism for being skewed toward the US and negotiated informally, bypassing full EU processes.
Detractors called it a “humiliation,” with the EU accepting duties while slashing its own tariffs, amid accusations of appeasement.
US-EU tariff truce brings fragile stability after months of brinkmanship
The deal’s ratification stalled in January 2026 due to Trump’s unrelated threats of tariffs over Greenland, prompting the EU Parliament to suspend approval and renew plans for retaliatory levies on €93 billion in US goods.
By February 10, a compromise emerged, including a sunset clause expiring in March 2028 and demands for US tariff reductions on over 400 products within six months, or EU reprisals.
With the Supreme Court invalidating the underlying tariffs, the Turnberry pact risks obsolescence. The EU’s concessions – such as zero tariffs on US aircraft, semiconductors, and farm goods – may persist without reciprocal U.S. relief, exacerbating imbalances.
Von der Leyen’s promises, defended as pragmatic amid global instability, now face scrutiny: If tariffs are nullified, does the EU reclaim leverage, or are investments locked in? Analysts warn of a “downward spiral” in transatlantic ties, with Canada urging preparedness for blunter US tactics.
As Trump pivots to other authorities, the ruling may force Brussels to rethink its strategy, balancing unity against a protectionist White House. For the EU, this judicial rebuke underscores the perils of golf-course diplomacy in an era of unpredictable trade wars.
With Reuters, with additional content by g.g.
Caption: Illustrative photo. A container ship berths at a port in Tokyo, Japan, 8 December 2025. On 08 December 2025, the Cabinet Office announced that Japan’s revised GDP figures for July-September period showed an annualized drop of 2.3 percent. Exports fell by 1.2 percent due to the impact of the high tariffs imposed by the US President Trump administration. EPA/FRANCK ROBICHON
Updated: February 20, 2026 - 19:02
