(Image source from: AP)
In a significant setback for US President Donald Trump, the Supreme Court removed tariffs on Friday. The court decided that Trump overstepped his powers when he implemented widespread tariffs. The decision indicated that Trump applied tariffs based on a law intended for situations of national emergency. The justices had a split decision of 6-3 regarding Trump's tariff strategy and concluded that these charges were not allowed under the 1977 law known as the International Emergency Economic Powers Act (IEEPA). Referring to the Constitution's delegation of tax powers, the Court pointed out that the Founding Fathers assigned Congress "only . . . access to the people's money," implying that the president does not possess inherent wartime power to levy tariffs. The court mentioned that "if Congress had meant to give the special and extraordinary power to impose tariffs" through IEEPA, "it would have clearly stated so, just like it has in other tariff laws. " According to the US Constitution, Congress holds, not the president, the power to impose taxes and tariffs. Yet, Trump has used tariffs as a vital tool in economic and foreign relations.
On Friday, the Supreme Court's three liberal justices joined forces with three conservative ones in a ruling that supported lower court decisions deeming the tariffs imposed by Trump under IEEPA as unlawful. Conservative Justices Brett Kavanaugh, Clarence Thomas, and Samuel Alito disagreed with the majority. In April 2025, Trump announced what he termed "reciprocal" tariffs on most nations to tackle trade deficits he labeled a national emergency. The Republican leader asserted that these tariffs were crucial for the economic safety of the US. He warned that the country would be vulnerable and in ruins without them. Small businesses and a group that included US states challenged this policy, claiming that IEEPA was being misused as a blank check for tariff creation, which the Constitution gives solely to Congress. By December, federal data revealed that the Treasury had collected over $133 billion from the import taxes imposed by the president under this emergency powers law.
The financial effect of Trump's trade duties is projected to reach around $3 trillion over the coming ten years, as reported by the Congressional Budget Office. According to federal statistics from December, the Treasury has gathered over $133 billion from the import fees that the president has set using his emergency powers. Numerous businesses, including the large warehouse retailer Costco, are already taking legal action to request refunds. The decision may only be temporary since the government is looking to reapply tariffs through different methods. US President Donald Trump expressed his feelings after the Supreme Court overturned his global tariffs, labeling it a "disgrace" in a discussion with state governors. On Thursday, Trump voiced his frustration about having to explain his tariff policy to the Supreme Court during a speech at a steel company in Georgia.
"I need to wait for this verdict. I've been waiting for a very long time, and it clearly states that I have the authority to act as president," he mentioned. "I have the authority to impose tariffs for the sake of national security against countries that have been taking advantage of us for years. " Trump clarified that the Supreme Court's decision did not cancel the tariffs themselves but only addressed a specific application of the International Emergency Economic Powers Act, which did not grant him the authority to implement the tariffs. To "safeguard" America, he stated that he will apply higher charges under other laws. He indicated that he is signing an executive order to implement a 10% global tariff based on Section 122, established by the Trade Act of 1974.
