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Supreme Court Rejects Trump Tariffs
Friday, February 20, 2026 1:26PM CST

This article was originally published at 10:37 a.m. CST on Friday, Feb. 20. It was last updated with additional information at 1:26 p.m. CST on Friday, Feb. 20.

**

ARLINGTON, Va. (DTN) -- Responding to the Supreme Court decision rejecting his tariffs under one law, President Donald Trump announced Friday he is imposing a universal 10% tariff under a different law and launching more investigations to impose tariffs on other imported products.

Trump lashed out after the U.S. Supreme Court on Friday ruled 6-3 that the president doesn't have authority under the International Emergency Economic Powers Act (IEEPA) to set sweeping tariffs against trade partners.

Trump immediately threatened he would impose a potentially different set of tariffs going forward. Trump signed a new order on Friday imposing a 10% global tariff under Section 122 of the Trade Act of 1974. The president also said he would press for more trade investigations under Sections 232 and 301 under the same law.

"It's a little more complicated, the process takes a little more time, but the end result is going to get us more money," he said.

Trump also praised the dissent by Justice Brett Kavanaugh, saying it gave him more authority to impose new trade restrictions. Defending his tariffs, Trump said his ask for other countries "was very modest" given what he could have done.

The tariffs would remain, "but other alternatives will now be used to replace the ones the court incorrectly rejected," Trump said.

Trump speculated a new regime of tariffs would take in even more money.

"Their decision is incorrect, but it doesn't matter because we have very powerful alternatives," Trump said.

The president also said the Supreme Court's ruling gave him more authority to restrict imports from coming into the country under IEEPA.

Asked about how he has used money from tariffs, Trump said he "just gave $12 billion to farmers" -- which is the basis for the $11 billion Farmer Bridge Assistance (FBA) program and $1 billion for specialty crops. Still, USDA states the $12 billion in aid came from the annual Commodity Credit Corp. (CCC) funding.

The ruling will immediately generate questions about trade pacts reached by the Trump administration, including announcements that include greater market access for agricultural commodities in agreements with the United Kingdom, Japan, India, Indonesia and China. Tariffs initially prompted China to stop buying U.S. soybeans then an agreement was reached last October that assured China would buy 12 million metric tons (mmt), followed by years with 25 mmt in purchases.

The High Court ruling spelled out Congress has historically delegated tariff authority explicitly and with limits, which it did not do in IEEPA. Along with that, Trump's interpretation would grant sweeping, unlimited tariff power without clear congressional authorization.

The ruling comes a week after the New York Federal Reserve Bank issued a report citing that nearly 90% of the tariff costs were borne by U.S. consumers and businesses. The tariffs also affect only certain sectors in some countries. For instance, the U.S. set a 35% tariff on Canadian imports, but 83% of Canadian imports are exempt from U.S. duties under the U.S.-Mexico-Canada Agreement (USMCA), the New York Fed noted.

ROLLINS TOUTS TRADE AGENDA

Agriculture Secretary Brooke Rollins, declined to weigh in on the tariff ruling before Trump spoke on Friday. At the USDA Agricultural Outlook Forum, Rollins said she was at the White House when the decision came down.

In her Outlook speech, Rollins pressed that the agricultural trade deficit that the Trump administration inherited is declining "because of all of the new trade deals and open markets." She said Trump's trade agenda has moved to "open up more markets than ever before" for farm products. Trump's agricultural trade deals, Rollins said, have come with countries that amount to roughly 50% of the world's economy. She also noted Trump struck the deal with China. Trump announced early Friday he would be going back to China in March as well.

"President Trump will not allow our American farmers to be used as pawns in the tariff regimes of other countries," Rollins said.

The ruling also comes just days before Trump is slated to give the annual State of the Union speech on Tuesday evening.

SOYBEAN GROWERS URGE NO NEW TARIFFS

Scott Metzger, an Ohio farmer and president of the American Soybean Association, noted farmers rely on imports for "fertilizer, seeds, pesticides, and agriculture equipment." Metzger called on Trump to avoid using other tariff powers to negotiate trade deals.

"Moving forward, certainty and dependable market access are essential for U.S. soy to remain competitive globally," Metzger said. "Because farmers are caught in a cost-price squeeze and ag input costs remain high, we urge the president to refrain from imposing tariffs on agricultural inputs using other authorities. We look forward to working with the Trump administration and Congress to strengthen market opportunities and support a stable farm economy for generations to come."

EQUIPMENT MANUFACTURES WELCOME RULING

Kip Eideberg, senior vice president of government relations for the Association of Equipment Manufacturers (AEM), said the Supreme Court rule is welcome news for equipment manufacturers, who have been dealing with higher input costs and trade uncertainty over the past year.

"The industry supports the administration's efforts to bring manufacturing back to the United States and secure domestic supply chains, but tariffs on critical parts and components have significantly raised the cost of domestic manufacturing and have made U.S.-made equipment less competitive in America as well as in foreign markets," Eideberg said. "This has resulted in disrupted supply chains, delayed capital investments, reduced investment in R&D, and a slowdown in the expansion of domestic manufacturing capacity."

Still, Eideberg also noted equipment manufacturers still face tariffs on steel and aluminum under Section 232 of the Trade Expansion Act of 1962. Those tariffs still raise the costs of importing equipment not produced in the U.S.

"We urge the administration to use today's ruling as an opportunity to chart a new course for tariff policy and secure more trade agreements that expand market access for America's equipment manufacturers," Eideberg said. "Fair, balanced, and mutually beneficial trade relationships with our allies and partners keep supply chains resilient, commerce flowing, and support millions of equipment manufacturing jobs across the country."

DEMANDS FOR IMMEDIATE REFUNDS

The ruling will open the door for businesses filing for potentially $175 billion in tariff revenue refunds.

The Wall Street Journal had reported, for instance, that Deere & Co said Thursday just under $600 million in tariff costs were tied to Trump's use of the IEEPA.

Following the Supreme Court decision, a small-business group calling itself "We Pay the Tariffs" called on the Trump administration to provide refunds to them.

Dan Anthony, executive director of the group, said in a statement the court's ruling was important to small businesses that have been "bearing the crushing weight" of tariffs. The group is a coalition of more than 800 small businesses launched in 2025.

"They've taken out loans just to keep their doors open," he said.

Chris Clayton can be reached at Chris.Clayton@dtn.com

Follow him on social platform X @ChrisClaytonDTN

Todd Neeley can be reached at Todd.Neeley@dtn.com

Follow him on social platform X @DTNeeley


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