Supreme Court Voids Tariffs; Cantor Denies Profiteering
A 6-3 Supreme Court ruling struck down Trump's global tariff policy; Cantor Fitzgerald denies offering trades that would profit from tariff refunds and calls for probes have followed.
Overview
The Supreme Court in a 6-3 judgment on Friday ruled that President Donald Trump lacked authority to impose his global tariff policy.
The ruling matters because reporting said Cantor Fitzgerald had pitched buying companies' tariff-refund rights and a July 2025 email suggested it had 'already put a trade through' representing about $10 million.
Cantor Fitzgerald said it never executed any such transactions and a spokesman said a salesman 'erroneously' believed the firm would offer the product, while two Democratic senators called for an investigation and Howard Lutnick criticized the court, according to reporting.
Reporting said the proposed trades would exchange refunds for about 20 to 30 percent of payments, that the firm claimed capacity to trade 'several hundred million' of refund rights, and that one claimed deal was about $10 million.
The decision prompted calls for probes and President Donald Trump said he would seek other legal means and has declared a 15 percent tariff on global trade, according to reporting.
Analysis
Center-leaning sources frame the story as limited wrongdoing by emphasizing procedural explanations and denials while acknowledging critics. They foreground a firm spokesman and a senior banker’s account, use mitigative terms (e.g., 'erroneously', 'decided against it'), and juxtapose criticism with context about common Wall Street practices to downplay impropriety.
Sources (3)
FAQ
In a 6-3 decision on February 20, 2026, the Supreme Court ruled that the International Emergency Economic Powers Act (IEEPA) does not authorize President Trump to impose the tariffs, as they exceed presidential powers reserved for Congress.[1]
Reporting indicated Cantor Fitzgerald pitched trades to buy companies' tariff-refund rights at 20-30% of payments and claimed a $10 million deal, but the firm denies executing any transactions, attributing it to a salesman's error.[story]
President Trump announced he would impose 10 percent global tariffs under Section 122 of the law to replace the invalidated IEEPA tariffs.[2]
Two Democratic senators called for an investigation into Cantor Fitzgerald following reports of their proposed tariff-refund trades.[story]
History
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