US Supreme Court Strikes Down Trump's Sweeping Global Tariffs

The US Supreme Court struck down President Donald Trump's sweeping global tariffs in a 6-3 ruling, determining he exceeded his authority by using the International Emergency Economic Powers Act (IEEPA) of 1977 to impose the trade measures. Chief Justice John Roberts stated that Congress did not expressly grant the power to impose tariffs under IEEPA.

Key points

• The ruling overturns most of Trump’s tariffs imposed under IEEPA, though steel and aluminum tariffs based on different laws remain in place.
• Justices Gorsuch and Barrett, both Trump appointees, joined the majority opinion against the tariffs, alongside Chief Justice Roberts and three liberal justices.
• The White House plans to quickly replace the invalidated levies using alternative, though potentially more cumbersome or limited, legal tools.
• The court did not rule on the entitlement of importers to refunds, leaving that issue for a lower court to resolve, with potential refunds estimated up to $170 billion.
• Trump stated he has a "backup plan" for tariffs following the verdict, while Democrats and industry groups welcomed the decision.

Why it matters

This decision represents a major legal defeat for President Trump's signature economic policy, blunting an executive tool he frequently used against trading partners. The ruling reinforces that tariff authority rests with Congress, not the President under IEEPA, creating renewed uncertainty for international trade.