The US Supreme Court on Friday declared former President Donald Trump’s sweeping global tariffs illegal, delivering a major political and economic setback that undermines a central policy of his economic agenda.
In a 6-3 decision, the conservative-majority court ruled that the International Emergency Economic Powers Act (IEEPA) “does not authorize the President to impose tariffs,” effectively blocking the across-the-board duties Trump imposed during his second term under emergency powers.
The ruling does not affect sector-specific tariffs that Trump separately imposed on steel, aluminum, and other goods, nor ongoing government probes that could trigger additional targeted duties.
Trump had relied on tariffs as a tool for trade negotiations, but his use of emergency powers to levy duties on virtually all US trading partners marked an unprecedented escalation. These included “reciprocal” tariffs over trade practices deemed unfair, and separate levies targeting Mexico, Canada, and China in response to drug trafficking and immigration concerns.
Chief Justice John Roberts, delivering the opinion, emphasized that “IEEPA contains no reference to tariffs or duties,” noting that if Congress had intended to grant such broad authority, it would have done so explicitly, as in other tariff statutes.
The court’s ruling upheld lower court decisions that had blocked the IEEPA-based tariffs, with the three liberal justices joining three conservatives in agreement. Justices Brett Kavanaugh, Clarence Thomas, and Samuel Alito dissented.
Lower trade courts had previously ruled in May that Trump overstepped his authority, blocking most of the sweeping tariffs, though the effect of that decision was temporarily stayed as the government pursued an appeal.
US business groups welcomed the decision. The National Retail Federation described it as providing “much-needed certainty” for American firms and urged courts to ensure a smooth process for refunding tariffs to importers. However, the justices did not specify the timeline or extent of possible refunds, with Kavanaugh warning that the process could be complicated.
Economists project significant financial impacts from the ruling. Gregory Daco, chief economist at EY-Parthenon, estimated that the loss of IEEPA tariff revenues could total roughly $140 billion, lowering the average US tariff rate from 16.8 percent to about 9.5 percent, though some increases may return through other measures. Yale University’s Budget Lab similarly predicts an effective rate of 9.1 percent, down from 16.9 percent, noting it remains historically high outside of 2025.
Internationally, the ruling drew attention from major trading partners. The European Union said it is studying the decision and maintaining close dialogue with the US, while Britain indicated it will review the impact on ongoing trade discussions. Canada described the decision as confirming that Trump’s tariffs were “unjustified.”
Analysts noted that while the ruling dismantles the legal foundation for Trump’s emergency tariffs, it does not entirely prevent the use of other statutory avenues for imposing tariffs, albeit with more limited scope or procedural requirements. Erica York of the Tax Foundation observed that the decision “would constrain the president’s ambitions to impose across-the-board tariffs on a whim,” while ING analysts called it a blow to the legal scaffolding supporting Trump’s trade restrictions, though not the policies themselves.
ELIJAH ADEYEMI
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