In a 6–3 ruling, the high court rejects President Donald Trump’s reliance on the International Emergency Economic Powers Act, wiping out broad import duties and signaling limits on unilateral trade authority.
The Supreme Court on Friday struck down former President Donald Trump’s sweeping global tariffs, delivering a significant setback to a core pillar of his economic and geopolitical strategy.
In a 6–3 decision, the conservative-led court ruled that Trump lacked clear congressional authorization to impose across-the-board import duties under the International Emergency Economic Powers Act (IEEPA), the 1977 statute he cited as the legal basis for the tariffs.
Chief Justice John Roberts, writing for the majority and joined by Justices Amy Coney Barrett and Neil Gorsuch as well as the court’s three liberal justices, concluded that the president’s asserted authority to impose tariffs of “unlimited amount, duration, and scope” required explicit congressional approval.
“The President asserts the extraordinary power to unilaterally impose tariffs of unlimited amount, duration, and scope,” Roberts wrote. “He must identify clear congressional authorization to exercise it.”
The court found that IEEPA “falls short” of granting such sweeping trade authority.
What the Ruling Eliminates
The decision wipes out:
- The 10% blanket tariff imposed on nearly all countries.
- Higher, targeted tariffs on major U.S. trading partners including Canada, Mexico, China, the European Union, Japan and South Korea.
- Certain “national security” tariff threats used as leverage in diplomatic negotiations.
The ruling represents a rare instance of the conservative-majority court curbing an expansive interpretation of executive power advanced by Trump.
Legal analysts note that the majority relied in part on the “major questions doctrine,” which holds that Congress must speak clearly when delegating powers of vast economic and political significance.
Roberts, Gorsuch and Barrett emphasized that tariff authority—a power constitutionally vested in Congress—cannot be transferred through vague statutory language.
Refund Fallout: Billions at Stake
The financial implications could be immediate and significant.
Companies that paid the now-invalidated tariffs may seek refunds amounting to billions of dollars. Several importers had already filed protective lawsuits in anticipation of such an outcome.
In dissent, Justice Brett Kavanaugh warned of administrative turmoil, predicting that the refund process could become a “mess,” particularly if importers had already passed tariff costs to consumers.
The majority opinion did not directly address refund mechanics, leaving lower courts and federal agencies to resolve the issue.
Political and Geopolitical Reverberations
The ruling undercuts a cornerstone of Trump’s trade doctrine, which framed tariffs as both economic policy and geopolitical leverage.
Trump had argued that tariffs were essential to reshoring manufacturing, confronting China, pressuring allies, and even addressing foreign policy disputes—including threats aimed at nations doing business with Iran.
In public remarks earlier this week, Trump defended tariffs as “the greatest thing that’s happened in this country,” crediting them with reviving domestic steel production and boosting factory output.
Critics, however, maintain that the tariffs fueled inflation, disrupted global supply chains, and injected uncertainty into trade negotiations.
The decision also clouds the legal footing of trade agreements reached under tariff pressure, including arrangements with the European Union, Japan and South Korea.
The White House has signaled it may explore alternative statutory authorities to preserve elements of the tariff framework.
Executive Authority on Notice
Beyond trade policy, the ruling carries broader constitutional implications.
By reinforcing congressional primacy over tariff power and invoking the major questions doctrine, the court signaled skepticism toward expansive readings of emergency powers in areas with profound economic consequences.
The case stands as one of the most consequential separation-of-powers rulings in recent years, reshaping the balance between Congress and the executive branch in global economic policy.
Whether the administration pursues new trade tools—or Congress steps in to clarify presidential tariff authority—remains to be seen.
For now, a central feature of Trump’s economic program has been decisively curtailed.
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-- By Michael R. Thomas, Lakisha Brown, and James A. Wright
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