The US Supreme Court has declared many of Donald Trump's tariffs illegal, marking a significant rebuke to the president's economic agenda. In a 6-3 ruling, the court found that a 1977 law intended for national emergencies did not justify most of the Trump administration's tariffs on foreign nations. This is the first time the court has overruled a second-term Trump policy.
Trump responded angrily, calling the justices who ruled against him 'a disgrace to the nation' and announcing a new 10% global baseline tariff under Section 122 of the Trade Act of 1974, which allows tariffs for 150 days. He also said investigations into unfair trading practices could lead to permanent tariffs.
The court's majority opinion stated that the power to enact tariffs during peacetime belongs to Congress, citing the Constitution's framers who 'recognized the unique importance of this taxing power'. The opinion also invoked the 'major questions doctrine', ruling that the president must have clear congressional authorisation for such actions, which he lacked.
The ruling was a blow to Trump's assertion of executive power, as he had used tariffs to reshape US trade policy without congressional approval. The court noted that the White House conceded the president has no inherent authority to impose peacetime tariffs, relying instead on the International Emergency Economic Powers Act (IEEPA).
Voting to strike down the tariffs were the court's liberal justices and Chief Justice John Roberts, along with Trump appointees Neil Gorsuch and Amy Coney Barrett. In dissent, Justice Brett Kavanaugh argued the ruling merely meant Trump 'checked the wrong statutory box' and could raise questions about refunds of billions of dollars collected.
