Supreme Court strikes down Trump’s sweeping tariffs
The US Supreme Court struck down President Donald Trump’s sweeping global tariffs, dealing him a significant loss on an issue vital to his economic agenda.
The 6-3 decision focuses on tariffs imposed under the emergency powers law, including sweeping “reciprocal” tariffs it imposes on nearly all other countries.
This is the first major piece of Trump’s broad agenda to come directly to the nation’s highest court, which he helped shape with the appointment of three conservative jurists in his first term.
Justices Samuel Alito, Clarence Thomas and Brett Kavanaugh dissented.
The Republican president has been vocal about the case, calling it one of the most important cases in U.S. history and saying a ruling against him would deal an economic blow to the country.
But legal opposition has spread beyond the political spectrum to include libertarian and pro-business groups that are often aligned with the Republican Party.
Polls have found that the tariffs are very unpopular with the public due to voters’ concerns about affordability.
The Supreme Court decision came despite a series of short-term victories in the court’s emergency brief that allowed Trump to move forward with extraordinary executive power flexibilities on issues ranging from high-profile layoffs to major federal funding cuts.
The tariff decision does not prevent Trump from imposing tariffs under other laws.
While these may have greater limits on the speed and severity of Trump’s actions, senior administration officials have said they expect to keep the tariff framework in place under other officials as well.
The Constitution gives Congress the power to impose tariffs.
But the Trump administration has argued that a 1977 law that allows the president to regulate imports during emergencies also allows him to set tariffs.
Other presidents have used the law dozens of times, often to impose sanctions, but Trump is the first president to invoke the law for import duties.
Trump set “reciprocal” tariffs on most countries in April 2025 to address trade deficits, which he declared a national emergency.
These come after he imposed tariffs on Canada, China and Mexico, ostensibly to address a drug-smuggling emergency.
A flurry of lawsuits followed, including from a dozen largely Democratic-leaning states and from small businesses selling everything from plumbing supplies to educational toys to women’s cycling clothing.
Opponents argued that the emergency powers law made no mention of tariffs and that Trump’s use of it failed several legal tests, including one that doomed then-President Joe Biden’s $500 billion ($711 billion) student loan forgiveness program to fail.
The economic impact of Trump’s tariffs is estimated to be approximately US$3 (A4.3) trillion over the next decade, according to the Congressional Budget Office.
The Treasury collected more than US$133 billion ($189 billion) from import duties imposed under the president’s emergency powers law, according to federal data from December.
Several companies, including big-box warehouse chain Costco, have already lined up in court to seek refunds.
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