In a stunning rebuke to President Donald Trump’s economic strategy, the United States Supreme Court on Friday invalidated most of his sweeping tariffs imposed on global trading partners. The conservative-leaning court ruled 6-3 that the president lacks authority under the 1977 International Emergency Economic Powers Act (IEEPA) to unilaterally slap massive import duties on countries like India, Canada, China, and Mexico.
Chief Justice John Roberts, writing for the majority, emphasized that the Constitution grants Congress exclusive power over tariffs. He criticized Trump’s expansive interpretation of the IEEPA, stating it does not authorize unlimited tariffs in scope, amount, or duration without clear congressional approval. ‘The claimed authority is sweeping,’ Roberts wrote, noting the law falls ‘far short’ of the necessary legislative backing.
This rare check on executive power marks a significant setback for Trump’s ‘America First’ trade agenda, which relied heavily on emergency declarations to justify reciprocal tariffs worldwide. The ruling specifically targets broad tariffs but leaves sector-specific duties on steel, aluminum, and copper intact under separate statutes.
Companies like Costco, Toyota, Revlon, and hundreds of others had challenged the tariffs, arguing they unlawfully inflated costs. With this decision, billions in previously paid duties could now be refunded, sparking a wave of reimbursement claims.
Trump’s move was unprecedented; he became the first president in nearly 50 years to invoke the IEEPA for tariffs rather than sanctions. Historically, the law addressed ‘unusual and extraordinary’ foreign threats through regulations, not broad trade barriers.
While a blow to the administration, options remain. Congress holds constitutional tariff authority, and the president can pursue duties via other statutes. This case underscores the limits of executive trade power, reshaping debates on global commerce and national security.