US Supreme Court Strikes Down Global Tariffs, Trump Fumes

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).

Quoting the Constitution's allocation of taxing authority, the Court noted that the Framers gave Congress "alone . . . access to the pockets of the people," and that the executive has no inherent peacetime authority to impose tariffs.

The court stated 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 ruled against the legality of President Trump's tariffs in a 6-3 ruling authored by conservative Chief Justice John Roberts
Photo Credit: AFP

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.

US President Donald Trump holds a chart as he delivers remarks on reciprocal tariffs during an event in the Rose Garden entitled "Make America Wealthy Again" at the White House in Washington, DC, on April 2, 2025
Photo Credit: AFP

Small businesses and a coalition including US states challenged the policy, arguing IEEPA was being stretched into a blank cheque for tariff-making, a power the Constitution assigns to Congress.

The Treasury had collected more than $133 billion from the import taxes the president has imposed under the emergency powers law as of December, federal data shows.

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.

Trump's Reaction

US President Donald Trump has reacted after the Supreme Court struck down his global tariffs and called it a "disgrace" during a meeting with state governors.

On Thursday, Trump complained that he had to justify his use of tariffs to the Supreme Court in a speech at a Georgia steel company. 

"I have to wait for this decision. I've been waiting forever, forever, and the language is clear that I have the right to do it as president," he said. "I have the right to put tariffs on for national security purposes, countries that have been ripping us off for years."

Tariffs Will Be Back

Trump said that the Supreme Court ruling did not overrule tariffs in itself, but just a specific use of the International Emergency Economic Powers Act that did not provide him with powers to impose the tariffs.

Trump announced that in an effort to "protect" America, he will charge more under the other statutes. He said that he is signing an executive order to impose a 10 per cent global tariff under the Section 122, created by the 1974 Trade Act.

(With inputs from agencies)