Court Says President Overstepped Authority
The Supreme Court of the United States has struck down former President Donald Trump’s sweeping global tariffs, ruling 6-3 that he exceeded his constitutional authority by invoking emergency powers to impose them.
At the heart of the case were the broad “reciprocal” tariffs Trump placed on nearly every US trading partner under a 1977 emergency powers law. The majority opinion, written by Chief Justice John Roberts, made clear that the Constitution assigns the power to levy taxes — including tariffs — to Congress alone. “The Framers did not vest any part of the taxing power in the Executive Branch,” Roberts wrote.
Justices Samuel Alito, Clarence Thomas and Brett Kavanaugh dissented. Kavanaugh argued that regardless of whether the tariffs were good policy, they were lawful under existing statutes.
The decision marks the first major element of Trump’s wide-ranging agenda to reach the nation’s highest court — a court reshaped in part by his own three appointments during his first term.
Emergency Powers and Legal Pushback
The Constitution explicitly grants Congress authority over tariffs, but the Trump administration relied on the International Emergency Economic Powers Act (IEEPA), a 1977 law that allows presidents to regulate economic transactions during national emergencies. While previous presidents have used the law to impose sanctions, Trump became the first to apply it to broad import taxes.
He justified the measures as necessary responses to trade deficits and, in some cases, drug trafficking concerns involving countries such as Canada, China and Mexico.
The move triggered a wave of lawsuits from Democratic-led states, small businesses and pro-business groups — some traditionally aligned with Republicans. Critics argued the emergency law does not authorize tariffs and that Trump’s interpretation failed established legal standards.
The economic stakes were enormous. The Congressional Budget Office estimated the tariffs would have a $3 trillion impact over the next decade. Federal data showed the Treasury had already collected more than $133 billion under the emergency measures by December. Since April 2, 2025 — dubbed “Liberation Day” by Trump — tariff revenues reached roughly $240 billion.
What Happens Next?
The ruling does not completely block Trump from pursuing tariffs under other trade laws, though those avenues come with stricter limits. Administration officials have signaled they will seek alternative legal pathways to preserve parts of the tariff framework.
One looming question is whether companies will receive refunds. Justice Kavanaugh warned in his dissent that sorting out repayments could become a “mess.” Analysts estimate potential refunds could total around $120 billion, roughly 0.5% of US GDP. Major corporations, including Costco, are among those seeking reimbursement through the courts.
Financial markets reacted positively at first, with the S&P 500 rising as much as 1% after the decision before settling lower. Investors have generally welcomed efforts to curb tariffs, though many believe Trump will continue fighting to maintain his trade agenda.
Earlier this year, Trump had warned on Truth Social that a ruling against his tariffs would mean “hundreds of billions of dollars to pay back” and harm the country’s economic interests. The court’s decision now sets the stage for a new chapter in the ongoing battle over executive power and US trade policy.
