Name: Trump's Global Tariffs Struck Down by Supreme Court
Uploaded: 2026-02-21T21:31:20.000Z
Duration: 5 min 21 s
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This latest headline coming in from the Supreme Court, global tariffs struck down by the Supreme Court.

Relative clauses (Restrictive vs. nonrestrictive)

So today was going to be the fate of whether or not Trump's IEBA tariffs, which about 60 to 75% of the tariff policy right now in the United States is based off of in the Supreme Court making this decision.

Trump's global tariffs are struck down by the U.S. supreme Court.

So this means that the Supreme Court has decided that using ipa, which this administration has done, when it comes to the fentanyl tariffs and comes to reciprocal tariffs for other countries, using IPA in is illegal.

Now, given that we are in the financial community, a lot of people may be thinking, does this mean we will not have tariffs?

This administration has talked about plan B.

Now they're going to enact tariffs using other policies via USTR and the Commerce Department, but using ipa.

The Supreme Court is saying that this was illegal.

Very interesting considering how they've been using these tariff refunds.

And also the president is going to give a massive address next week.

A lot of Supreme Court justices go to the State of the Union.

You can imagine this is going to be an incredibly difficult time for this president, considering this was paramount, a huge policy for his administration.

And not only do they go to the State of the Union, I believe often they're sitting in the front row.

So this might be a little bit more awkward.

Emery, the noise we were kind of getting from the Supreme Court, is it surprising that they struck it down, or did it seem like we were heading in this direction?

Well, there was a lot of individuals who thought potentially this is just too big, big.

It was too big of a policy to fail and that they would uphold the president's use of ipa.

But others were saying if you look at iefa, which has not been used in this way, really ever, when it comes to tariff policy, they were saying this wasn't the best legal justification to enact these tariff policies.

IPA is supposed to be used for emergency purposes.

Now, some were saying maybe there would be a split decision.

You use IPA and call the fentanyl tariffs an emergency issue, but not reciprocal.

And now the Supreme Court is basically saying using ipa, that is not legal.

So this is, you know, really can't over, over explain, emphasize how big of a blow this is for the Trump administration.

Let's just get a quick check on how markets are reacting to this.

Anne Marie, I know you probably want to look through the decision a little bit more too so first here's Your S&P 500.

We'll see what some of these individual companies are doing, especially those who have joined a lawsuit in order to get tariff refunds.

Consumer discretionary which had been falling that is now up 1%.

Communication services still the best sector.

Let's take a quick look at what bonds are doing this morning too.

They are moving higher but recall they had been moving higher after PC yields I.e.

p had been moving higher given we had our piece.

The yields have been moving higher given that PC was largely hot.

So your two year yield that moves in up by nearly three basis points.

Your ten year yield that stands at 4,08 that also moves higher by two basis points.

So again the reaction from this has been higher for your yields across the curve.

And meanwhile an equity market that's rebounding now being led by consumer discretionary companies.

So again a lot of these consumer tariff exposed companies moving higher.

Annmarie Hordern is still around the table with us.

Emery, what, what does I mean maybe we don't know at this point but there has been this list of companies who have joined lawsuits in order to try to claw back some sort of, some sort of tariff refund from ipa.

Because actually if you didn't join the lawsuit and then you had a decision like this, you wouldn't actually be in the queue preparing to potentially or even be legally allowed to get the, the rebate back in terms of the tariffs that these companies have been paying.

So that is why you are seeing a lot of companies like Nike on your screen just shooting up right now the stock.

But it is important to take a step back and remember that tariffs are going to be here to say yes for the Trump administration.

IPA gives an incredible amount of flexibility to this administration to quickly put honestly tariffs on tariffs off basically overnight they're going to have to go through potentially investigations or they're going to have to use other authorities that you can enact tariffs but potentially only for a shorter amount of time or have certain limits them.

So there now will be limits on this administration but they're going to get to similar tariff rates when it comes to countries that have done deals, and

also just broadly, when it comes to the fentanyl tariffs, they're going to have to use other avenues.

But this is a big blow for the administration that has really used IPA the entire year to enact their entire trade policy.

And it's that all of that is so important to keep in mind.

Anne Marie, when we look at this market reaction, how much of it will last?

Do you start to get an unwind of anything we've seen, given the ability, as you've been describing, to enact tariffs in other ways?