The U.S. Supreme Court on Friday struck down President Donald Trump’s sweeping global tariffs, delivering a major setback to his economic agenda.
In a 6–3 ruling, the court said Trump exceeded his authority by imposing tariffs under a 1977 emergency powers law. The decision covers the so-called “reciprocal” tariffs Trump applied to most countries, arguing they violated the Constitution.
Chief Justice John Roberts, writing for the majority, said the Constitution clearly gives Congress—not the president—the power to impose taxes, including tariffs. “The Framers did not vest any part of the taxing power in the Executive Branch,” he wrote.
The court ruled that the International Emergency Economic Powers Act (IEEPA) does not authorise the president to impose import taxes. While past presidents used the law mainly for sanctions, Trump was the first to rely on it to levy broad tariffs.
Justices Samuel Alito, Clarence Thomas and Brett Kavanaugh dissented. Kavanaugh said the tariffs may or may not be good policy, but argued they were lawful under the statute.
Trump called the ruling “a disgrace” after learning of it during a meeting with US governors, according to people familiar with the discussion. The White House did not immediately comment.
The ruling does not address whether companies will receive refunds for tariffs already paid. Federal data show the Treasury collected more than $133 billion under the emergency powers law, with long-term costs estimated at around $3 trillion. Several companies, including retailer Costco, are already seeking refunds in lower courts.
Kavanaugh warned that any refund process could be complicated and costly for the US government.
The decision does not fully block Trump from imposing tariffs under other laws, which allow more limited and targeted measures. Administration officials said they expect to continue pursuing tariffs using alternative legal authorities.
Still, the ruling was welcomed by challengers. Neal Katyal, who represented a group of small businesses, said the verdict reaffirmed that Congress controls taxation powers, not the president.
The decision may also affect ongoing trade talks. A spokesperson for the European Commission said the EU was seeking clarity from Washington while continuing to push for lower tariffs.
Trump has long defended tariffs as essential to protecting US industries and countering China. Although the ruling curbs his ability to act alone, it does not end his broader trade agenda.
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