The US Supreme Court delivered a significant blow to former President Donald Trump's economic policy by striking down his global tariffs on February 20, 2026. This ruling found that Trump exceeded his authority in invoking federal emergency powers to impose these tariffs, as well as targeted import taxes related to fentanyl trafficking. The decision, voted 6-3 by the court, marked his biggest legal defeat since his return to the White House.
Following the Supreme Court's ruling, the US government is now mandated to refund $166 billion in revenue that was collected from these tariffs. A web portal was launched on April 30, 2026, to facilitate these tariff rebates. This massive refund is expected to act as a significant market tailwind, despite initial market uncertainty.
While the Supreme Court's decision was a clear setback for Trump's trade agenda, senior US officials quickly defended the administration's assertive trade policies, assuring that the ruling would not undo already negotiated deals with international partners. Amidst this uncertainty, Bitcoin briefly fell below $65,000 to approximately $64,300, its lowest since February 6, and Ether also experienced a decline of up to 5.2%. Despite this initial market reaction, the long-term economic impact of the $166 billion in rebates is being framed as a positive, albeit under-discussed, factor for markets.
