In a major reversal for the Trump administration, the Supreme Court struck down Friday most of President Donald Trump’s sweeping tariffs, ruling that his reliance on the International Emergency Economic Powers Act was unlawful. The justices held that the 1970s statute, which permits presidents to “regulate” imports during national emergencies, does not authorize imposing tariffs.
Trump, who had invoked emergencies over fentanyl and trade deficits to justify tariffs on nearly every country, had called the case among the most consequential in U.S. history. The ruling leaves sector-specific tariffs intact.
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Chief Justice John Roberts wrote the opinion for the court, joined by Associate Justices Amy Coney Barrett, Neil Gorsuch, Ketanji Brown Jackson, Elena Kagan, and Sonia Sotomayor. Associate Justice Brett Kavanaugh, joined by Associate Justices Clarence Thomas and Samuel Alito, dissented, arguing tariffs are a traditional tool to regulate imports.
The decision is expected to trigger refund claims by companies seeking to recoup billions paid under the invalidated tariffs.
While the court’s ruling eliminates the IEEP as a means for justifying tariffs, that doesn’t mean the president is out of options. Trump could still attempt to implement tariffs on the basis of other laws, although those efforts would also be subject to litigation.
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