Trump Tariffs Struck Down by Supreme Court in Major Ruling
Supreme Court holds IEEPA does not allow President to impose broad tariffs.
The U.S. Supreme Court has struck down several of the broad tariffs imposed during President Donald Trump’s administration, ruling that he exceeded his legal authority under the International Emergency Economic Powers Act (IEEPA). The decision emphasizes that Congress, not the president, holds the primary power to impose import tariffs, reinforcing the constitutional separation of powers in trade policy.
The ruling specifically invalidates “reciprocal” tariffs applied to a wide range of imports from multiple countries, though it does not affect tariffs imposed for national security purposes under Section 232 of the Trade Expansion Act. Legal experts noted that this distinction means some tariffs remain in place, while importers affected by the now-unlawful measures could seek refunds, potentially totaling over $175 billion in U.S. revenue.
Chief Justice John Roberts wrote the majority opinion, joined by two justices appointed by Trump, stating that the President’s authority under IEEPA does not extend to sweeping tariffs on international trade. The Court’s decision upholds a lower court ruling and clarifies limits on unilateral executive power in economic policymaking.
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The decision has significant economic and political ramifications. Markets responded positively to the ruling, as it removed legal uncertainty around import costs. At the same time, Trump described the verdict as “deeply disappointing” and indicated that he may explore other legal avenues to maintain trade restrictions, raising the possibility of new legislative or administrative measures.
Business groups and lawmakers welcomed the ruling as a step toward restoring clarity and stability in U.S. trade policy. Congressional leaders stressed the need to ensure that future tariffs comply with statutory authority, highlighting the ongoing tension between executive action and legislative oversight.
The Supreme Court’s ruling serves as a landmark reminder of the constitutional balance of power in economic policy, limiting the president’s unilateral authority while reinforcing Congress’s central role in shaping trade legislation. As importers navigate the potential refunds and revised trade rules, the decision is likely to influence U.S. trade policy and legal precedent for years to come.
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