The U.S. Supreme Court ruled 6-3 that President Donald Trump’s use of a national emergency law to impose sweeping tariffs was unconstitutional.
The Court held the International Emergency Economic Powers Act does not grant the President the power to levy taxes, a power reserved for Congress.
The decision invalidates tariffs imposed on most foreign trade partners and those linked to fentanyl, but leaves other tariffs, like those on steel, intact.
The ruling opens the door to potential refunds of billions of dollars in tariffs already paid by importers, a process the Court did not define.
The Trump administration indicated it will pursue alternative legal authorities to implement new tariffs, signaling ongoing trade policy uncertainty.
In a landmark decision that recalibrates the balance of power between the White House and Congress, the U.S. Supreme Court has struck down a central pillar of President Donald Trump’s trade agenda. On Friday, February 20, the Court ruled 6-3 that Trump’s use of the 1977 International Emergency Economic Powers Act to impose broad-based tariffs was an unlawful overreach of executive authority. The ruling delivers a significant constitutional rebuke, affirming that the power to tax imports rests solely with the legislative branch, and casts immediate uncertainty over the future of U.S. trade policy and the fate of approximately $175 billion in already-collected duties.
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