SCOTUS rules against Trump’s tariffs, with broadband providers proceeding with build plans

The U.S. Supreme Court has struck down the Trump Administration's tariffs, dealing a blow to his key agenda. At the same time, broadband providers will continue to pursue their broadband build-out strategy while navigating a policy structure that has become a moving target.

Feb. 23, 2026

5 min read

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In a 6-3 ruling isssued on Feb. 20, the U.S. Supreme Court struck down most of the tariffs that have formed President Trump’s signature economic policy. The court ruled that the President exceeded his authority and that taxes, such as tariffs, require congressional authorization.

The Court made its ruling in the case of Learning Resources, Inc. v. Trump, with Chief Justice John Roberts joined by Justices Sotomayor, Kagan, Gorsuch, Barrett and Jackson in the majority. At the same time, Justices Thomas, Kavanaugh, and Alito dissented.

Since February 2025, tariffs have been imposed on a wide range of goods entering the U.S. from various trading partners.

The decision voids most tariffs imposed over the past year under the International Emergency Economic Powers Act (IEEPA), including reciprocal tariffs used as leverage in trade talks.

The ruling is expected to limit the Administration’s ability to rely on emergency powers to impose wide-ranging tariffs, though tariffs adopted under other, more specific statutory authorities remain unaffected.

Right on cue, during a Friday morning White House governors event, Pres Trump called the ruling "a disgrace," according to a CNN report that also noted sources citing the president's reference to a "backup plan."

Broadband’s pulse continues

Whether it’s the pricing of network materials or the changes to the BEAD program, the broadband industry has been in transition and uncertainty over the past year.

As of February 2026, the US telecommunications sector faces significant hardware cost increases due to a 10% global tariff imposed by President Trump, which applies to items such as fiber-optic cables, 5G antennas, and routers. These duties are expected to heighten Capital Expenditure (CAPEX) for carriers, potentially slowing 5G deployment, particularly in rural areas.

Reports have also emerged of an impending fiber shortage, which could affect smaller service providers.

However, it appears that large fiber manufacturers, such as Corning, are taking action. On the heels of announcing a major fiber supply win from Meta, Corning announced it is expanding manufacturing capacity in North Carolina to address fiber shortages impacting U.S. data center and broadband projects during its fourth-quarter earnings call.

Broadband watchers like Jeff Heynen, VP at Dell’Oro Group, said that he does not “see a significant change in the impact on network equipment providers.”

Amidst the murky climate, Heynen said service providers are not delaying any planned builds at this point.

“Operators and vendors are all getting used to the uncertainty and continuing with their network buildouts and equipment purchasing plans,” he said. “The ever-changing tariff situation remains somewhat out of their control.”

He added that the bigger challenge will come from another source—the rapid data center build-out craze, particularly with customer premises equipment.

“The bigger issue in broadband—especially when it comes to CPE—is the dramatically increased cost of RAM driven by data center buildouts,” Heynen said. “That is going to have a bigger impact on pricing than tariffs will.”

Jonathan McHale, Vice President for Digital Trade at CCIA.

Calling for clarity, stability

Industry groups that represent broadband, consumers, and large organizations in cloud and cybersecurity note that the Supreme Court’s ruling will bring clarity and stability.

The Computer & Communications Industry Association (CCIA), a trade association representing a broad cross-section of communications and technology firms, said that, outside of Congressionally mandated tariffs, these restrictions are a tool in trade dispute negotiations, and that policymakers should negotiate in good faith and treat commerce fairly on all sides.

Jonathan McHale, Vice President for Digital Trade at CCIA, said in a prepared statement that the court’s decision “caps a year of turbulence in trade policy that we are all working to adapt to.”

“With this decision behind us, we look forward to bringing more stability to trade policy,” he said. “We welcome the opportunity to work with the administration to address outstanding digital trade barriers through a deliberative process using targeted trade tools.”

Gary Shapiro, Executive Chair and CEO, Consumer Technology Association.

Meanwhile, the Consumer Technology Association (CTA) praised the Supreme Court’s action as a win for American consumers and recognized the separation of powers.

“By striking down tariffs under the International Emergency Economic Powers Act (IEEPA), the Court affirmed what our Founding Fathers were so careful to write into our Constitution: the power to tax Americans rests with Congress, not the President,” said Gary Shapiro, Executive Chair and CEO, Consumer Technology Association (CTA). “Innovation thrives on predictability, and this common-sense decision brings much-needed clarity for American businesses and consumers.”

Lightwave will continue to follow this story as it develops.

Find additional Endeavor B2B coverage and industry-specific implications of the ruling below.