The US Supreme Court has ruled that Donald Trump’s use of executive power to impose global tariffs was illegal, delivering a sharp rebuke to the president’s economic agenda. In a 6-3 decision, the court determined that the 1977 International Emergency Economic Powers Act (IEEPA) did not provide the legal justification for most of the tariffs. It is the first time the court has overruled one of Trump’s second-term policies.
The ruling struck down tariffs imposed under the IEEPA, which Trump had used to reshape US trade policy. The court stated that the power to levy tariffs during peacetime belongs to Congress, citing the constitution’s framers who gave Congress sole authority over taxing. The majority opinion argued that the president must point to clear congressional authorisation for such actions, which he could not do.
Trump reacted angrily, calling the justices who ruled against him “a disgrace to the nation” at a press conference. He announced he would enact a new 10% global baseline tariff under Section 122 of the Trade Act of 1974, a law allowing 150-day tariffs, and initiate investigations into unfair trade practices that could lead to permanent tariffs.
The ruling was a significant blow to Trump’s assertion of executive power. Joining the court’s liberal bloc were Chief Justice John Roberts and Trump appointees Neil Gorsuch and Amy Coney Barrett. In a dissenting opinion, Justice Brett Kavanaugh suggested the ruling might not greatly restrict presidential tariff authority, as Trump could simply use different legal authority.
The court also cited the “major questions doctrine”, preventing the executive branch from relying on ambiguous laws for consequential actions. The decision raised questions about refunds for billions of dollars already collected from tariffs, with the court offering no guidance on the matter.
