Feb 20 β€’ 21:55 UTC πŸ‡ͺπŸ‡Έ Spain El Mundo

Institutional victory, greater economic uncertainty with an unleashed Trump

The U.S. Supreme Court ruled against Trump's tariffs, signaling institutional checks, but Trump plans to explore alternate legal grounds to maintain them.

On February 20, 2026, the U.S. Supreme Court declared illegal the tariffs imposed by the Trump administration under the International Emergency Economic Powers Act (IEEPA), with a six to three vote. This decision is seen as a hopeful indication that institutional checks within the U.S. government remain effective. However, in a subsequent press conference, Donald Trump expressed that these institutional mechanisms would not be sufficient to hinder him as his administration is not constrained by this particular legal defeat.

Trump indicated that the repeal of tariffs under the IEEPA does not exhaust the legal avenues available to the U.S. Executive in commercial matters. He specifically mentioned Sections 122 and 301 of the Trade Act of 1974 as alternative legal bases to maintain or even increase tariffs. This suggests that the administration is poised to use these alternate provisions as a bridge instrument to tackle economic and trade challenges in the immediate future, continuing Trump's aggressive stance on tariffs despite the legal setback.

This development raises concerns about ongoing economic uncertainty, as Trump’s administration, even after an institutional defeat, is weighing options that could lead to heightened trade tensions. The potential for escalating tariffs under different legal frameworks may have significant implications for international trade relationships and could further destabilize the economic landscape, adding to the complexities faced by businesses and economies globally.

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