Supreme Court Overturns Trump Tariffs: What Texas Agents Need to Know
Supreme Court Overturns Trump Tariffs: What Texas Agents Need to Know
February 22, 2026 | Industry News
TL;DR: The Supreme Court just struck down Trump's sweeping tariffs in a 6-3 decision, ruling he overstepped presidential authority. For Texas agents, this could eventually mean lower construction costs and more inventory — but don't expect overnight changes.
What Happened
On Friday, the Supreme Court ruled 6-3 that President Trump exceeded his authority by imposing broad tariffs under the International Emergency Economic Powers Act (IEEPA). Chief Justice Roberts wrote the majority opinion, stating that the Constitution "very clearly" assigns Congress — not the president — the authority to impose tariffs.
The ruling overturns two major categories of tariffs: the "reciprocal" tariffs ranging from 34% on China to a 10% baseline on most countries, and the 25% tariff on certain goods from Canada, China, and Mexico. Tariffs on steel and aluminum imposed under separate legal authority remain in place.
This caps a legal battle that started in April 2025 when Trump declared trade deficits a national emergency and imposed what he called "Liberation Day" tariffs. Federal courts blocked them in May and August 2025, and the Supreme Court has now put the final nail in it.
The Department of the Treasury had collected over billion from these tariffs before the ruling.
Why This Matters for Texas Agents
Let's get specific about what this means for your business.
Construction Costs Could Ease
Tariffs jacked up prices on imported lumber, steel, and building materials. That made new construction more expensive, which meant fewer homes being built, which meant tighter inventory. Cotality chief economist Selma Hepp noted that reconstruction costs have risen 60% over four years — tariffs were a significant contributor.
With the tariffs overturned, builders should see some relief on material costs. That doesn't mean new homes get cheaper tomorrow — labor shortages, high financing costs, and supply chain issues are still real. But removing artificial price pressure is a step in the right direction.
Inventory Implications
Texas has been dealing with tight inventory in most metros. When it costs more to build, builders build less. When builders build less, agents have fewer listings to work with. This ruling removes one barrier to new construction, which could help inventory recover — particularly in high-growth markets like DFW, Austin suburbs, and Houston.
Buyer Confidence
Economic uncertainty has been holding buyers back. NAR's Pending Home Sales Index dropped 0.8% in January, and economists pointed directly at affordability concerns and uncertainty. A major source of that uncertainty just got resolved. Clearer trade rules mean better economic forecasting, which means more confident buyers.
The Affordability Picture
Here's where I'll be direct. Mortgage rates are near 6%, and according to NAR's Lawrence Yun, that means 5.5 million more households can qualify for a mortgage compared to a year ago. If even 10% act on that — roughly 550,000 additional buyers — demand is about to tick up. Lower construction costs meeting increased buyer demand is the kind of environment where prepared agents win.
What You Should Do
- Talk to your builder contacts. Ask what this means for their pipeline and pricing. Having this intel makes you more valuable to buyer clients.
- Update your buyer clients. If you have fence-sitters waiting out the uncertainty, this ruling removes one of their concerns. Reach out.
- Watch material prices. The tariff rollback won't show up in lumber prices overnight, but track it over the next 60-90 days. This is the kind of market intelligence that separates good agents from great ones.
- Run the spring numbers. With rates near 6%, tariff pressure easing, and spring buying season approaching, the next 90 days could be significantly busier than January suggested.
The Bigger Picture
This ruling fits into a broader story about the 2026 housing market finding its footing. Rates are stabilizing. Inventory is slowly improving. Legal uncertainty around tariffs is resolved. The NAR settlement has reshaped commission conversations but the sky didn't fall.
For Texas specifically, the state remains one of the strongest markets nationally. Pending sales in the South were up 4.0% year-over-year in January despite the national dip. Markets like Phoenix, Charlotte, and the Bay Area are posting double-digit pending sale increases.
The agents who position themselves now — building pipeline, nurturing their sphere, staying informed — are the ones who'll capture the spring surge.
Bottom Line
- Supreme Court struck down Trump's broad tariffs in a 6-3 ruling
- Construction material costs should see some relief, though not overnight
- Reduced economic uncertainty could bring more buyers off the sidelines
- Texas markets remain strong — South region pending sales up 4% YoY
- Spring 2026 is shaping up to be busier than recent months suggested
- Prepared agents with informed clients will have the advantage
Sources: - Supreme Court overturns Trump's tariffs in 6-3 decision, HousingWire, February 21, 2026 - Pending home sales fall as economic uncertainty remains, HousingWire, February 20, 2026 - Inman News, February 20, 2026
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