The US Supreme Court has ruled that many of Donald Trump's tariffs were implemented illegally, delivering a significant blow to the president's trade agenda. In a 6-3 decision, the court found that the 1977 International Emergency Economic Powers Act (IEEPA) did not provide legal justification for the tariffs imposed on countries worldwide.
The ruling marks the first time the court has overruled a policy from Trump's second term. The majority opinion stated that the power to enact tariffs during peacetime belongs to Congress, not the executive branch. The court cited the Constitution's framers, who gave Congress 'alone ... access to the pockets of the people'.
Trump responded by calling the justices who ruled against him 'a disgrace to the nation' and announced he would enact a new 10% global baseline tariff under Section 122 of the Trade Act of 1974, which allows tariffs for 150 days. He also said the administration would initiate investigations into unfair trading practices that could lead to permanent tariffs.
The dissenting opinion, written by Justice Brett Kavanaugh, argued that the ruling essentially meant Trump had 'checked the wrong statutory box' and would not greatly restrict presidential tariff authority. However, it raised questions about whether billions of dollars in tariffs already collected would need to be refunded.
