The U.S. Supreme Court dealt a major blow to a key component of the Trump administration’s economic strategy – tariffs – teeing up implications for the broader agriculture industry, as farmer sentiment dipped at the start of the year on troubles within the ag economy.
On Feb. 20, the Supreme Court issued a 6-3 decision that the Trump administration does not have the authorization to impose tariffs under the International Emergency Economic Powers Act, 91 Stat. 1626.
However, this decision does not rule out the possibility that the Trump administration could use other means. The Trump administration can use Section 232 of the Trade Expansion Act of 1962 and Section 301(b) of the Trade Act of 1974, to impose tariffs, according to the non-profit policy research group Center for Strategic and International Studies.
The American Soybean Association reacts to tariff decision
U.S. soybean farmers became central to the tariff debate, as many growers experienced higher input costs and dwindling market access, namely the Chinese market. The Trump administration responded to the agriculture volatility by providing $12 billion in one-time bridge payments, as AgTechNavigator previously reported.
The American Soybean Association (ASA) was quick to respond to the Supreme Court decision on tariffs, advocating for the Trump administration to abstain from using other means to impose tariffs.
“The case at the Supreme Court has been closely followed by soybean farmers who have seen the cost of inputs rise over the past year due to tariffs. U.S. soybean growers are reliant upon imports for critical farming tools like fertilizer, seeds, pesticides, and agriculture equipment,” said Scott Metzger, ASA president and Ohio farmer, as shared in a statement.
He added, “Moving forward, certainty and dependable market access are essential for U.S. soy to remain competitive globally. Because farmers are caught in a cost-price squeeze and ag input costs remain high, we urge the President to refrain from imposing tariffs on agricultural inputs using other authorities. We look forward to working with the Trump Administration and Congress to strengthen market opportunities and support a stable farm economy for generations to come.”
Farmer sentiment started 2026 on a sour note
The tariff decision comes as U.S. farmers face the prospect of another challenging year in 2026. Farmer sentiment in January reached the lowest point since October 2024, as half of 400 producers surveyed said that their farm operations were worse off than a year ago, according to Purdue University’s Ag Economy barometer.
Additionally, U.S. farmers were souring on the idea that tariffs would be beneficial to the ag economy. Most farmers (54%) said that tariffs would strengthen the ag economy in Dec. 2025, but that was a decline from 70% who said the same in April 2025, according to Purdue University’s Ag Economy Barometer.
Editor’s note: This article may be updated with additional commentary and statements and perspective that are made available. To share insights on the Supreme Court’s tariff decision, email AgTechNavigator’s Americas Editor Ryan Daily at ryan.daily@wrbm.com.
