The US Supreme Court dealt a major setback to President Donald Trump, ruling that he overstepped his authority by imposing sweeping tariffs under a law meant for national emergencies.
In a 6–3 decision, the justices said a 1977 statute known as the International Emergency Economic Powers Act does not give presidents the power to create broad import tariffs. The ruling strikes down many of Trump’s trade duties introduced under that law, though tariffs imposed through other legal authorities remain in place.
Chief Justice John Roberts, writing for the majority, said the administration claimed “extraordinary power” to set tariffs without clear approval from Congress. The court concluded that lawmakers never authorized the emergency law to be used for tariffs.
Speaking at the White House, Trump sharply criticized the decision and said he would pursue new tariffs using other legal powers. Later Friday, he announced plans for a temporary global 10% tariff under a separate trade law, set to take effect Tuesday.
The ruling affects country-specific “reciprocal” tariffs and a 25% duty on some imports from Canada, China and Mexico, but leaves measures such as steel and aluminum tariffs untouched. Businesses that challenged the policy welcomed the decision, calling the tariffs unpredictable and harmful to trade.
Companies that paid the invalidated duties may seek refunds, though the court did not provide detailed guidance on how that process would work. Some justices warned the financial impact on the US Treasury could be significant.
The Constitution gives Congress authority over tariffs, but Trump relied on emergency powers to justify his actions — an approach no previous president had used for import taxes. The case marks one of the few major legal setbacks for the administration since Trump began his second term in 2025.
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