In a major blow to US President Donald Trump, the Supreme Court struck down tariffs on Friday. The court ruled that Trump exceeded his authority when he imposed sweeping tariffs. The ruling stated that Trump pursued tariffs under a law that was meant for use in national emergencies.
The Ruling
The justices were divided 6-3 on Trump’s approach to tariffs and held that the imposition of these levies was not permitted under the 1977 law called the International Emergency Economic Powers Act (IEEPA).
The court noted that “had Congress intended to convey the distinct and extraordinary power to impose tariffs” with IEEPA, “it would have done so expressly, as it consistently has in other tariff statutes.”
The US Constitution grants Congress, and not the president, the authority to issue taxes and tariffs. However, Trump has leveraged tariffs as a key economic and foreign policy tool.
Justices Involved In The Ruling
The Supreme Court’s three liberal justices joined three conservatives in Friday’s ruling, which upheld lower court decisions that tariffs Trump imposed under IEEPA were illegal.
Conservative Justices Brett Kavanaugh, Clarence Thomas and Samuel Alito dissented.
Trump On Tariffs
In April 2025, Trump set what he called “reciprocal” tariffs on most countries to address trade deficits that he declared a national emergency.
The Republican leader had described the tariffs as important for US economic security. He predicted that the country would be defenceless and ruined without them.
The economic impact of Trump’s tariffs has been estimated at some $3 trillion over the next decade, according to the Congressional Budget Office. The Treasury has collected more than $133 billion from the import taxes the president has imposed under the emergency powers law, federal data from December shows. Many companies, including the big-box warehouse chain Costco, have already lined up in court to demand refunds.
The ruling could prove to be temporary as the government seeks to reimpose tariffs in other ways.