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The Financial News 247The Financial News 247
Home » Supreme Court delays ruling on Trump tariffs until at least February

Supreme Court delays ruling on Trump tariffs until at least February

By News RoomJanuary 20, 2026No Comments4 Mins Read
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Supreme Court delays ruling on Trump tariffs until at least February
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The Supreme Court’s lack of a ruling on the legality of President Trump’s sweeping tariff regime on Tuesday means the case won’t get resolved until at least next month.

The closely watched case on whether it’s constitutional for Trump to issue painful tariffs under the 1977 International Emergency Economic Powers Act remained at a standstill on Tuesday.

With the justices now heading into a four-week recess, the earliest possible date for a ruling is Feb. 20.

The Supreme Court declined on Tuesday to rule on the legality of President Trump’s sweeping tariff regime – pushing back a resolution until at least next month.

The case was fast-tracked after oral arguments on Nov. 5.

Lower courts previously ruled that Trump exceeded his authority by using emergency powers to impose broad tariffs.

Legal analysts say the Supreme Court’s repeated postponements on issuing a decision may reflect internal debate — not just over whether the tariffs are lawful, but over what remedy would apply if the court rules against Trump.

Some court watchers have suggested the justices could seek a middle ground that curbs future tariffs while limiting or avoiding retroactive refunds, which could exceed $130 billion and deal a major blow to the US Treasury.

Treasury Secretary Scott Bessent has publicly played down the risk of a defeat, predicting the court is unlikely to strike down what he has called the president’s “signature economic policy.”

“I believe that it is very unlikely that the Supreme Court will overrule a president’s signature economic policy,” Bessent said Sunday on NBC’s “Meet the Press,” arguing the justices would be reluctant to create economic chaos.

The high court did not issue a decision on Trump’s tariffs under the 1977 International Emergency Economic Powers Act, according to Bloomberg News.

Members of the Trump administration have said the president would immediately replace the duties if the court strikes them down.

The prolonged silence from the court comes as Trump continues to expand his use of tariffs as leverage, including fresh threats against European allies tied to his push to acquire Greenland.

In a social media post Saturday, the president announced new tariffs on Denmark, France, Germany, the United Kingdom and four other European countries as part of his push to annex Greenland.

The 10% levies, which will start Feb. 1 and jump to 25% on June 1, sent shockwaves through global stock markets.

Treasury Secretary Scott Bessent has publicly played down the risk of a defeat, predicting the court is unlikely to strike down what he has called the president’s “signature economic policy.”

The Trump administration has argued the tariffs are a tool to raise significant tax revenue for the US government and give the nation the upper hand in foreign negotiations.

A study published Monday found Americans are bearing 96% of the cost President Trump’s tariffs – contradicting White House claims that foreign exporters are eating the added costs.

US customs revenue soared roughly $200 billion in 2025 – but it was “a tax paid almost entirely by Americans,” according to research from the Kiel Institute, a German think-tank, which analyzed $4 trillion worth of shipments from January 2024 through November 2025.

For every $100 collected in tariff revenue, roughly $96 comes out of American pockets and just $4 is coughed up by foreign exporters, according to the study.

Instead of slashing prices to swallow the tariff costs, it appears most foreign exporters are simply reducing their market share in the US – banking on other global markets to make up the difference.

A study published Monday found Americans are paying 96% of President Trump’s tariffs – contradicting White House claims that foreign exporters are eating the added costs.

“The average tariff imposed by America has increased by almost tenfold under President Trump, and inflation has continued to cool from Biden-era highs,” White House spokesman Kush Desai told The Post.

“The Administration has consistently maintained that foreign exporters who depend on access to the American economy, the world’s biggest and best consumer market, will ultimately pay the cost of tariffs, and that’s exactly what’s playing out.”

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