The Supreme Court delivered a major blow to President Trump’s protectionist policies Friday, striking down his use of a 1970s emergency law to impose hefty tariffs on imports from dozens of nations. In a 6-3 decision, the justices declared that the International Emergency Economic Powers Act does not empower the president to enact widespread duties on goods from partners including India (hit with 18% tariffs), China, Canada, and Mexico.
Leading the majority opinion, Chief Justice John Roberts rejected the administration’s claim of near-limitless tariff-setting power. ‘We claim no special expertise in economics or foreign policy,’ he wrote, but affirmed the court’s role in enforcing constitutional boundaries. The IEEPA, enacted in 1977, was meant for handling national emergencies with targeted measures, not overhauling global trade.
This ruling dismantles a cornerstone of Trump’s strategy to reshape international commerce through unilateral action. It highlights tensions between executive overreach and legislative prerogative, especially from a court often seen as aligned with conservative priorities.
Affected industries stand to recover billions as firms prepare lawsuits for tariff refunds. Notably excluded are specialized tariffs on metals like steel and aluminum, which survive under distinct legal provisions.
Trump’s invocation of the IEEPA for tariffs was a historic first, diverging from decades of precedent focused on sanctions. The decision opens paths for Congress or alternative laws to impose duties, but it curtails the president’s solo playbook in trade wars.
As global markets react, this verdict reinforces checks and balances, potentially influencing future presidents wary of testing emergency powers in economic battles.