When Donald J Trump attempted to unilaterally reshape global trade by unfurling sweeping trade tariffs from February 2025, the world gasped at the power of the US president.

A proud Trump trumpeted that his action was to stop exploitation by other nations and that it would boost domestic manufacturing, create jobs, and reduce the US trade deficit.

It roiled markets and rattled nations, with leaders of many affected economies rushing to Washington DC to meet him to plead for lower rates and, in the process, making all manner of promises, such as investing heavily in the US.

On Feb 20, 2026, however, the US Supreme Court struck down the tariffs that had been imposed through executive orders under the International Emergency Economic Powers Act (IEEPA) of 1977 by a 6-3 vote.

I fear the ramifications of this – including on Malaysia – may be felt for months on end.

How will the US Treasury deal with the US$133 billion it has so far collected from the imposition of Trump’s tariffs? How does this impact the legality of the trade deals signed by the US with various nations – including Malaysia – in negotiating the tariffs? How does this affect bilateral relations and regional alignments? Can anyone trust the US after this?

One thing is certain: it’s going to be messy. And it will add further uncertainty to an already unstable global scenario.

It is to be noted though that the IEEPA tariffs account for only about half of the tariffs imposed by the US.

The court ruled that Trump’s tariffs under the IEEPA had exceeded the powers given to the president by Congress under a 1977 law allowing him to regulate commerce during national emergencies created by foreign threats.

An angry Trump denounced the six judges who struck down his pet tariff project but praised the trio who backed his move.