We're wrapping up our live coverage of the Supreme Court decision in Learning Resources, Inc v. Trump.

The major ruling - and Trump's response - can be expected to have an effect on trade, the global economy, Americans' personal finances, politics and more.

You can read what North America Correspondent Anthony Zurcher thinks it means for Trump's second-term agenda here, as well as how Canada, one of the top US trading partners, views the decision.

We also have covered the major turns of the day here, and our White House correspondent Bernd Debusmann has described what it was like to cover Trump's press briefing about the ruling in this video.

We'll be back when more big trade, Supreme Court, or other news breaks.

Danielle Kaye
New York business reporter

The BBC is learning new details about Trump's plans to impose new tariffs that could, essentially, replace those struck down by today's ruling.

In a press conference after the decision was released, Trump said he planned to impose a new 10% global tariff under a never-used law known as Section 122, which gives him the power to put in place tariffs up to 15% for 150 days (at which point Congress must step in).

That, along with the ruling, raised questions about the fate of trade deals many countries struck with the Trump administration to lower tariffs last year.

Late Friday afternoon, a White House official said countries that previously reached trade deals with the US, including the UK, India and the EU, will now face the global 10% tariff under Section 122 rather than the tariff rate they had previously negotiated. Most UK goods had been subject to a 10% "baseline" rate., external

The Trump administration expects those countries to keep abiding by the concessions they had agreed to grant in the trade deals, the official added.

Analysis - Supreme Court ruling diminishes one of Trump's top foreign policy toolspublished at 22:48 GMT 20 February

22:48 GMT 20 February

Daniel Bush
Washington Correspondent

In addition to all of the economic ramifications, the Supreme Court ruling today also has a deep impact on President Trump's foreign policy agenda.

Since returning to office more than a year ago, Trump has wielded tariffs to bolster American power on the world stage.

That tool has largely been directed at trade, of course as Trump used sweeping global tariffs - the same ones struck down by the court on Friday - to force the UK, India and other key trading partners to negotiate new deals with the US.

But Trump has also used tariffs, or the threat of them, to pressure other nations in ways not directly tied to the economy. The dispute over Greenland last month, for example, is a window into Trump's broader tariffs strategy.

Trump called for the US to seize Greenland, only to face stiff resistance from the territory, Denmark (which controls it), and allies across Europe. He responded by threatening to levy taxes on goods from nations opposing his plan. The threat forced Denmark and Greenland to the negotiating table.

And while that dispute remains unresolved, it showcased how Trump used tariffs as a tool in foreign affairs.

The tariff threat-as-diplomacy tool hasn't entirely gone away with this decision. But it is greatly diminished.

Jessica Murphy
BBC News, Toronto

For Canada, this Supreme Court ruling will, at first blush, seem like good news, even vindication for many Canadians who felt unfairly targeted by their closest trading partner.

But the ruling brings more uncertainty.

Currently, the vast majority of trade have been sheltered by the USMCA, a sweeping trilateral North American trade agreement, from the fentanyl-related tariffs that Trump imposed and which were part of the ruling.

Prime Minister Mark Carney has often said Canada is among the countries in the world with the lowest tariff rate due to the USMCA, although Canada is still feeling the pain of separate tariffs on goods from sectors like steel, autos and lumber.

With the US president making clear that he will find a replacement for the tariffs struck down by the court, the question is: What’s next?

Ahmed Adan
BBC World Service

Diane Swonk, the chief economist at KPMG US, offers this about the prospect of the money collected through Trump's emergency powers tariffs will be refunded: “Unfortunately, I'd say curb your enthusiasm, although I understand the desire for relief.

"The reality is that the administration has been anticipating this and has warned that they will pull other levers to quickly reinstate any tariffs ruled illegal," she says.

Already, Trump has said he plans to instate 10% levies through another part of US trade law.

Speaking to the BBC World Business Express about the potential refund that businesses worldwide could seek, Swonk says: “The Supreme Court itself actually noted in their brief that the logistics of refunds are a mess and it will be very difficult to prove and be able to provide all the paperwork and the time involved.”

That means small and mid-sized businesses are not likely to see refunds.

Those who do "will be the ones that can literally dot all their I's and cross all their T's on the paperwork" and should expect to wait a while.

She also says that the "other levers" could be harder to reverse later on.

“So, there's an undercurrent to this that they're going to be using more statutory tariffs with investigations that, over time, could be harder to lift after they get implemented," she says.

Kwasi Gyamfi Asiedu
US reporter

Image source, Bloomberg via Getty Images

The US Supreme Court struck down President Donald Trump's authority to impose tariffs using emergency powers.

Here is how we got to today's decision:

• 20 January 2025: Trump is inaugurated for his second term
• 3 March 2025: Trump imposes 25% tariff on imports from Canada and Mexico
• 2 April 2025: Trump announces "Liberation Day" tariffs imposing a baseline 10% tariff on nearly every country, with some countries given higher rates
• 9 April 2025: Trump announces 90-day pause in Liberation Day tariffs
• 14 April 2025: Wine importer V.O.S. Selections, Inc and others sue the Trump administration in US Court of International Trade
• 22 April 2025: Two businesses - Learning Resources. and hand2mind - sue in federal court, challenging legality of the Liberation Day tariffs
• 28 May 2025: The US trade court rules Trump's tariffs are illegal
• 29 May 2025: The Federal court grants an injunction temporarily blocking the tariffs but the decision is stayed on appeal
• 9 September 2025: Supreme Court consolidates the two lawsuits
• 5 November 2025: Supreme Court hears oral arguments on Trump's tariffs
• 20 February 2026: Supreme Court strikes down Trump's authority to impose tariffs without Congress in a 6-3 decision

Emma Simpson
Business correspondent

Crucially for the UK, this ruling doesn’t impact the deals the UK government has secured for the steel, aluminium, pharmaceuticals, autos, and aerospace sectors - which represent most of our trade with the US. Nothing changes here.

There is a potential impact on the additional 10% blanket tariffs on other goods that Trump said he had planned.

But the world has more questions than answers right now, and for the UK it depends on what President Trump does next. For example, he could find a workaround to re-enact the tariffs he had imposed using his emergency powers via other legal means. There is also a question of potential refunds. But its US importers who pay the cost of the tariffs to US customs, although many UK firms will have had to absorb some or all the extra costs.

It could all get very complicated.As we wait to see what comes next, we should note that the government says it expects its privileged trading position with the US to continue.

Image source, reuters

US Treasury Secretary Scott Bessent has commented on the Supreme Court's ruling, saying the issues of refunds could drag on for "years".

He and other officials have said the administration will use other parts of US law to continue to impose the levies, such as a statutory provision that permits tariffs on imported goods that threaten national security and another allowing retaliatory actions like tariffs against trading partners that the US believes have used unfair trade practices.

Speaking at an event in Dallas after the ruling, Bessent said revenues already collected from the tariffs that the court struck down were "in dispute" since the Supreme Court did not provide any instructions on refunds. He said the issue would be decided by the international trade court, and Trump said earlier he expected it to be tied up in litigation.

"My sense is that could be dragged out for weeks, months, years," he said, and later added that "I've got a feeling the American people won't see it."

Bessent also said that by using new Section 122 tariffs coupled with enhanced Section 232 and Section 301 tariffs, the Treasury estimates that this "will result in virtually unchanged tariff revenue in 2026", despite the loss of the emergency powers tariffs.

Michelle Fleury
New York business correspondent

Image source, Bloomberg via Getty Images

“We’re witness to history,” said Rick Woldenberg, after the Supreme Court ruled in favour of his educational toy company’s challenge to Trump’s tariff policy.

Woldenberg told me he was unimpressed at the President’s alternatives to tariffs, saying that “if the government is bound and determined to try to harm us through excessive taxes, I'm sure they'll find a way".

He added: "I don't think it's a hollow victory when the Supreme Court stands with you to respect the rule of law. I think that that's a major victory.”

Learning Resources, a family-owned educational toy maker with around 500 employees, estimates it paid roughly $10 million in import duties last year - money Woldenberg says he hopes to recover following the court’s decision.

The BBC's North America Editor Sarah Smith and North America Correspondent Anthony Zurcher joined BBC Radio 4 Presenter Justin Webb to unpack the day's drama: starting with the US Supreme Court decision to block global tariffs and ending with the President’s withering attack on some of the justices for their decision.

You can listen in above or at the link here.

Michelle Fleury
New York business correspondent

Markets rallied after President Donald Trump reacted to the Supreme Court’s major ruling on tariffs.

The Dow ended the day up 0.47%.

The S&P 500 gained 0.69%.

And the Nasdaq Composite was higher by 0.90% percent.

President Trump blasted the decision, calling it “a disgrace to our nation” in a White House news conference. But he quickly moved to reassure supporters, saying he plans to pursue a new 10% global tariff using alternative legal authority.

Despite that threat of fresh tariffs, investors are clearly breathing a sigh of relief.

The slight market rise on Friday suggests that Wall Street believes the president’s aggressive tariff strategy had been weighing on businesses — and that his future trade measures may not reach the same sweeping levels, especially with congressional elections nine months away.

That said, today’s ruling opens a new chapter of uncertainty.

Questions remain about what tariffs might come next, whether companies can seek refunds on duties already paid, and what all this means for consumer prices. But for now, traders appear to believe that, on balance, the overall risk from tariffs has been reduced.

Canada's International Trade Minister Dominic LeBlanc says the Supreme Court's decision shows the levies were "unjustified".

LeBlanc adds that the tariffs causing the most pain in Canada are still in force, and the government would work with Washington to "create growth and opportunities on both sides of the border".

Steel and aluminium imports from Canada to the US were subject to 25% tariffs, which President Trump threatened to double but then went back on.

A 25% tariff on Canadian cars and car parts was also imposed last year. This was a shock to the country's car production industry, where roughly 90% of vehicles are exported to the US. Earlier this month, Canadian Prime Minister Mark Carney announced new plans to bolster the industry through financial incentives for carmakers to invest in Canada and the reintroduction of rebates for EVs.

For context: The Supreme Court decision applies to the tariffs that Trump imposed using the president's emergency powers and import taxes that he put in place through other means are still in place.

Image source, Getty Images

Image source, AFP via Getty Images

California Governor Gavin Newsom, a Democrat who frequently mocks Trump on social media, is praising the Supreme Court's decision, and not missing the opportunity to slam Trump.

"Even Donald Trump’s Supreme Court agrees: His tax on the American people is illegal. A huge win for families and small businesses across the country who have been suffering under this man’s ego," Newsom writes on X.

Newsom added in a follow-up post: "Issue an immediate refund to all Americans for your illegal tax. Now."

Democratic Senator Elizabeth Warren echoed Newsom's demand for tariff refunds to Americans, saying in a post that it requires more than just the Supreme Court's decision to "undo the massive damage that Trump's chaotic tariffs have caused".

During his briefing at the White House earlier, Trump, though, suggested that he was not preparing to issue refunds and instead any potential payments would be probably be tied up in litigation for years. Earlier, we broke down how businesses are preparing for a refunds battle.

Ahmed Adan
BBC World Service

Beth Benike, the owner of Busy Baby products in Minnesota, who has been speaking to the BBC World Business Express, has said that “Oh my gosh, I feel that like a thousand-pound weight has been lifted off my chest."

“It's been devastating, to be honest. My products are all manufactured in China. I make a line of products that stop babies from dropping and throwing their things on the floor. And they're made out of silicone, which we don't have in the US,” she says.

Beth Benike adds that “I had two containers worth of product ready to ship two days after the Liberation Day tariffs were announced. So, I was forced to abandon my products in China for eight weeks, which led to an out-of-stock situation with loss of revenue.”

She says that she had let some of her employees go in the last year, and “I had to cash in my retirement. I have not been able to plan anything for my business.”

“If I had to add up the potential revenue lost and the revenue lost while we were out of stock because of the tariffs, it's probably close to a million dollars in revenue,” she told the BBC World Business Express.

Image source, EPA

Mike Pence, Trump's former Vice-President from his first term, says the Supreme Court's ruling is proof "the Constitution grants Congress - not the president - the power to tax".

Pence is the founder of Advancing American Freedom, an organisation that has lobbied against Trump's tariffs.

He writes that he is "proud of the work" the organisation did to "advance economic freedom and defend the constitution".

"American families and American businesses pay American tariffs - not foreign countries. With this decision, American families and businesses can breathe a sigh of relief," he adds.

We just heard Trump speak in the wake of the Supreme Court's decision to strike down his sweeping tariffs plan.

Here's a recap of what he told reporters at the White House:

• Some of the first words we heard from Trump after he came to the podium were that the decision was "deeply disappointing" and that he was ashamed of "certain members of the court for not having the courage to do what's right for our country"
• He thanked the justices who dissented - justices Thomas, Alito and Kavanaugh - for their "strength and wisdom" and criticised those who went against his tariff plan
• The president accused the Supreme Court of being "swayed by foreign interests", without providing any evidence
• Trump said he's signing an executive order to impose a 10% global tariff using Section 122, which was created by the 1974 Trade Act
• The president also said he would use Section 301 as a means to impose tariffs
• He offered a glimpse into how he was reading the ruling saying it struck down a specific use of the International Emergency Economic Powers Act, which according to the Supreme Court did not grant him the power to impose tariffs in the way he had claimed

Businesses preparing for refunds battlepublished at 20:07 GMT 20 February

20:07 GMT 20 February

Natalie Sherman
New York business reporter

Many businesses were already bracing themselves for a fight over refunds.

And Trump just signalled that they will have one, warning that he expected the issue to be tied up in court for years.

Trade attorneys have said the government could simply set up a process for firms to claim back their money – some $130bn so far, according to the most recent government data. Electronic payments and receipts mean the procedure would not necessarily have to be complicated.

But Trump’s comments suggest the White House does not intend to give up the money quickly.

Since the majority’s decision was silent on the question of refunds, this matter is expected to go to the Court of International Trade. While courts have authorised refunds before, those were much smaller in scale.

The costs involved with litigating the issue mean many smaller firms could get left out.

Image source, Jamie McCarthy/Getty Images

We're hearing from Vice-President JD Vance who has called the ruling "lawlessness from the court, plain and simple".

"Today, the Supreme Court decided that Congress, despite giving the president the ability to 'regulate imports', didn't actually mean it," he wrote on social media.

"[The rulling's] only effect will be to make it harder for the president to protect American industries and supply chain resiliency," Vance said.

Tommy Lumby
Business data journalist

Trump’s tariffs have already brought in a fair bit of extra revenue since they came in last April, as the chart below shows.

Customs duties surged from under $10bn (£7.4bn) in March to a peak of more than $34bn in October.

That dropped slightly to just over $30bn by January 2026 - the latest month for which there is complete data.

Many firms that paid those duties now want a refund, though that may not be as straightforward as they hope.

Danielle Kaye
New York business reporter

Image source, Danielle Kaye

Some small business owners, who have seen their profits fall as a result of Trump's tariffs, are greeting the Supreme Court's ruling with cautious optimism.

Jenelle Peterson, co-founder of Wild Life Outdoor Adventures, said her Canadian toy firm, which makes its toys in China before shipping them to the US for distribution, took a roughly 25% hit to its profits last year.

Peterson held prices steady for six months after Trump returned to the White House. But she said she couldn't hold out forever. A knot-tying game now costs $19.99, up from $14.99.

"It's hard to keep the lights on," Peterson said.

That's why she welcomed the court's blow to Trump's authority.

"It sends a really good message that we can't have these insane fluctuations in tariff rates and economic policy, because it's so damaging to small businesses," she said.

As she processes the implications of the ruling, Peterson is already making plans to import more products to the US. She hopes to eventually claw back enough money to invest in designing new toys.

Still, she said lingering uncertainty - about refunds and other tariff authorities that the Trump administration might leverage - is keeping her on edge.

"I have a bit of reservation in too much celebration," Peterson said. "But for us, every percentage point matters."