The Supreme Court of the United States has struck down some of President Donald Trump’s most far-reaching global tariffs, dealing a significant blow to one of his administration’s key trade policies.
In a 6–3 ruling, the court held that the law relied upon to impose the tariffs did not grant the president authority to enact such sweeping measures.
The tariffs, introduced last year, targeted goods from nearly every country. Initially focused on imports from Mexico, Canada and China, the measures were later expanded in April during what the administration dubbed “Liberation Day.”
The Trump administration justified the duties under the International Emergency Economic Powers Act (IEEPA), a 1977 law that allows the president to regulate trade during a national emergency. Mr Trump argued the tariffs were necessary to address drug trafficking and trade imbalances, and said they would boost American manufacturing and investment.
However, states and small businesses that filed the lawsuit contended that the law made no mention of tariffs and did not give the president broad authority to impose taxes or override existing trade agreements. They argued that only Congress has the constitutional power to levy tariffs.
Writing for the majority, Chief Justice John Roberts said Congress has historically delegated tariff powers “in explicit terms and subject to strict limits.”
“Had Congress intended to convey the distinct and extraordinary power to impose tariffs, it would have done so expressly,” Roberts wrote.
The ruling has been welcomed by businesses that said the tariffs sharply increased the cost of imported goods and disrupted supply chains. Some companies expressed hope that refunds of previously collected duties would be processed swiftly.
