US Supreme Court strikes down Trump’s global tariffs

WASHINGTON: The US Supreme Court on Friday struck down President Donald Trump’s sweeping tariffs, ruling that he exceeded his authority by using a law designed for national emergencies to impose import taxes, delivering a major legal setback with implications for the global economy.

In a 6-3 decision authored by conservative Chief Justice John Roberts, the court upheld lower court rulings that Trump’s use of the International Emergency Economic Powers Act (IEEPA) was unlawful. The ruling confirmed that the law does not grant the president the power to impose tariffs on international trade independently.

“Our task is to decide whether the power to ‘regulate… importation’ under IEEPA includes the power to impose tariffs. It does not,” Roberts wrote.

The decision was welcomed by Democrats and business groups, though some warned it could create short-term uncertainty in trade markets. Following the ruling, US stock indexes rose, while the dollar weakened.

Justice Brett Kavanaugh, in a dissent joined by Justices Clarence Thomas and Samuel Alito, said the ruling did not prevent Trump from imposing tariffs under other legal authorities, warning that the decision could create complications for refunds and ongoing trade agreements.

The court’s majority cited the “major questions” doctrine, which requires clear congressional authorization for executive actions of significant economic or political impact, saying Trump’s tariffs intruded on Congress’s constitutional powers.

Trump had used the tariffs as a key tool in his trade and foreign policy, targeting nearly every US trading partner under IEEPA, a law historically intended for sanctions or emergency regulation, not tariffs. Some tariffs were also imposed under other laws not at issue in this case.

The legal challenge was filed by affected businesses and 12 US states, most of them led by Democrats. The Supreme Court ruling signals a major check on presidential authority in trade matters.

The IEEPA-based tariffs had generated billions in revenue, with estimates suggesting $175 billion collected, much of which may need to be refunded. The ruling leaves open the possibility for the administration to pursue alternative legal paths for imposing tariffs.

Democratic leaders called the decision a victory for consumers. Senate Democratic Leader Chuck Schumer said: “Trump tried to govern by decree and stuck families with the bill. Enough chaos. End the trade war.”

The ruling comes amid ongoing debate over Trump’s aggressive use of tariffs as leverage in international trade, which has drawn criticism from allies and disrupted global supply chains.

Trump’s administration has indicated it may explore other statutory authorities to maintain some tariffs, but none offer the same broad scope as IEEPA. Analysts said the ruling could affect ongoing negotiations and trade deals worldwide.