Supreme Court Strikes Down Most of Trump's Tariffs

Michigan business owner says ruling could return millions to his company

Published on Feb. 21, 2026

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The Supreme Court handed the Trump administration a major defeat on Friday, striking down most of President Trump's sweeping tariffs. The high court ruled that the president does not have the authority to impose tariffs under a 1977 emergency powers law he used to levy taxes on nearly all U.S. global trading partners. Some Michigan businesses, including one that has a lawsuit against the president, approved of the court's decision.

Why it matters

The Supreme Court's ruling is a significant check on the president's trade policy, which had imposed billions in tariffs on U.S. businesses and consumers. The decision could provide relief to companies like Detroit Axle that were hit hard by the increased costs.

The details

The Supreme Court ruled that President Trump exceeded his authority by imposing the tariffs under a 1977 emergency powers law. Trump criticized the court's decision and said he will impose a 10% global tariff. Mike Musheinesh, CEO of auto parts company Detroit Axle, said the ruling could result in millions of dollars returning to his Michigan-based business, and a win for consumers who were paying higher prices due to the tariffs. Musheinesh said his company's revenue increased 35% in 2025 but profitability dropped 80% as they couldn't pass all the costs to customers.

  • The Supreme Court handed down its ruling on Friday, February 21, 2026.
  • In 2025, Detroit Axle saw a 35% increase in revenue but an 80% drop in profitability due to the tariffs.

The players

Mike Musheinesh

CEO of auto parts company Detroit Axle.

Donald Trump

Former President of the United States who imposed the sweeping tariffs that were struck down by the Supreme Court.

Don Ufford

Former Ford engineer who is running for Michigan's 11th congressional district as a Democrat.

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What they’re saying

“It's a sigh of relief, not only for myself but for the American consumer, for the American businesses.”

— Mike Musheinesh, CEO, Detroit Axle (CBS News Detroit)

“Thank goodness somebody finally stood up against Trump. You know, there was a promise it was going to help, but you know what happened, people are now paying on average $1,000 more than they were last year.”

— Don Ufford, Former Ford engineer, Democratic congressional candidate (CBS News Detroit)

What’s next

The Supreme Court did not address whether, or how, companies that collectively paid billions in tariffs can get their money refunded. Trump said it could take years to litigate any refunds.

The takeaway

The Supreme Court's ruling is a significant check on the president's trade policy, which had imposed billions in tariffs on U.S. businesses and consumers. The decision provides relief to companies like Detroit Axle that were hit hard by the increased costs, and highlights the ongoing debate over the balance of power between the executive and legislative branches on trade policy.