Phoenix AZ – February 23, 2026 | By STAFF HERE PHOENIX WRITER
WHAT’S HAPPENING
What did the Supreme Court rule regarding former President Trump’s tariffs?
The Supreme Court ruled on February 20, 2026, that former President Trump exceeded his authority by imposing tariffs under the IEEPA, stating Congress holds tariff power.
How does this ruling affect businesses in Phoenix, Arizona?
The decision creates market uncertainty and may disrupt existing trade agreements for Phoenix businesses engaged in international commerce.
What about refunds for tariffs already paid?
The Supreme Court did not address refunds for the estimated $130 billion to $175 billion collected; this issue is remanded to lower courts for a lengthy process.
Will the administration still impose new tariffs after this ruling?
Yes, the administration intends to use alternative legal authorities like Sections 122, 232, and 301 to impose new tariffs and maintain revenue.
A Supreme Court ruling on February 20, 2026, invalidated key tariffs imposed by former President Trump, introducing significant market uncertainty for businesses in Phoenix, Arizona. The decision asserts that Congress, not the President, holds the power to levy tariffs. Businesses and trade partners are closely monitoring the ramifications, while the administration plans to use alternative legal avenues for future tariffs.
Supreme Court Ruling Against Trump’s Tariffs Creates Market Uncertainty for Businesses
A landmark Supreme Court decision on February 20, 2026, invalidated a significant portion of former U.S. President Donald Trump’s tariffs, introducing considerable uncertainty for businesses engaged in global trade. While financial markets remained calm in the immediate aftermath, the ruling could disrupt existing trade agreements and necessitate adjustments for companies involved in international commerce.
What Was the Supreme Court’s Decision on Tariffs?
The U.S. Supreme Court, in a 6-3 decision, determined that the former President exceeded his authority by imposing widespread tariffs under the International Emergency Economic Powers Act (IEEPA). The Court concluded that the power to levy tariffs, considered a form of taxation, is primarily vested in Congress under Article I, Section 8 of the U.S. Constitution. This ruling categorically invalidates tariffs that were imposed using IEEPA as their legal basis.
How Will This Affect Trade Agreements and Businesses?
The decision poses potential disruptions for various trade arrangements that were negotiated or influenced by the now-invalidated IEEPA tariffs. Countries that were subject to these higher import duties, such as China and South Korea, are closely monitoring Washington’s subsequent actions. Businesses that have paid these tariffs may now seek refunds, adding a layer of complexity to their financial planning.
What About Refunds for Collected Import Taxes?
The Supreme Court’s ruling did not directly address the matter of refunds for the estimated $130 billion to $175 billion in tariffs already collected under the IEEPA. This complex issue has been remanded to lower courts, specifically the Court of International Trade, and is anticipated to involve a lengthy legal process spanning “weeks, months, years”. Business associations are advocating for a streamlined process to secure these refunds, emphasizing the potential economic boost for importers.
What is the Administration’s Stance on Future Tariff Revenues?
U.S. Treasury Secretary Scott Bessent acknowledged that the question of refunds would be resolved by the courts. However, he affirmed that the administration expects tariff revenues to remain stable in the future. This outlook is based on the administration’s intent to use alternative legal authorities, such as Sections 122, 232, and 301 of existing trade laws, to impose new tariffs and maintain current tariff levels.
How Are Financial Markets Responding to the Tariff Decision?
Despite the significant legal development, financial markets responded calmly to the news, taking it “in stride”. This muted reaction is largely attributed to the fact that the Supreme Court’s decision was widely anticipated by market observers.
What Are the Next Steps for Tariff Policy?
Following the Supreme Court’s decision, former President Trump announced plans to impose a new global tariff, initially at 10% and later raised to 15%, under Section 122 of the 1974 Trade Act. Additionally, the administration is considering the use of Section 232, which addresses national security concerns, and Section 301, which pertains to unfair trade practices, to implement new tariffs. The U.S. Customs and Border Protection agency announced that it would cease collecting IEEPA-based tariffs starting February 24, 2026.
What Was the Background of the Tariffs?
The tariffs in question were initially implemented by former President Trump, beginning in April 2025, using the International Emergency Economic Powers Act as the asserted legal justification. The Supreme Court’s ruling specifically applies to tariffs imposed under this act, leaving other tariffs, such as those under Section 232, unaffected.
| Aspect | Details |
| Date of Ruling | February 20, 2026 |
| Legislation Invalidated | International Emergency Economic Powers Act (IEEPA) |
| Court’s Basis | Presidential authority exceeded constitutional limits; tariff power rests with Congress |
| Immediate Business Impact | Uncertainty, potential disruption of existing trade agreements |
| Financial Market Reaction | Remained calm; outcome widely anticipated |
| Refunds for Past Tariffs | Not addressed by Supreme Court; remanded to lower courts (Court of International Trade) for lengthy determination |
| Estimated Tariffs Collected (IEEPA) | Approximately $130 billion to $175 billion |
| Administration’s Response | New tariffs announced under alternative authorities (Sections 122, 232, 301); commitment to stable tariff revenue |
| New Global Tariff Rate (Initial) | 10%, subsequently raised to 15%, under Section 122 authority |
Deeper Dive: News & Info About This Topic
HERE Resources
Arizona Small Businesses Voice Concerns Over Tariffs
Author: STAFF HERE PHOENIX WRITER
The PHOENIX STAFF WRITER represents the experienced team at HEREPhoenix.com, your go-to source for actionable local news and information in Phoenix, Maricopa County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Waste Management Phoenix Open, Cactus League Spring Training, and Arizona State Fair. Our coverage extends to key organizations like the Greater Phoenix Chamber of Commerce and Visit Phoenix, plus leading businesses in technology and healthcare that power the local economy such as Intel and Banner Health. As part of the broader HERE network, including HERETucson.com, we provide comprehensive, credible insights into Arizona's dynamic landscape.
