The Supreme Court rattled the US business landscape on Friday when it struck down the heart of President Trump’s second-term tariff program, ruling 6-3 that his sweeping blanket tariffs are illegal.
The decision came more than a year into Trump’s second term and followed skeptical questions from the chief justice during oral arguments last November and appeared set to immediately halt a large portion of Trump’s tariffs. Those tariffs were first announced on “Emancipation Day” last year using a law called the International Emergency Economic Powers Act (IEEPA) of 1977.
“The IEEPA does not give the President authority to impose fees,” read the ruling written by Chief Justice John Roberts.
The decision also raised the question of refunds, which could set back an estimated $129 billion to importers in the coming months. That backs up two lower courts — including the U.S. Court of International Trade — that previously found Trump did not have the authority to impose a global tax using a 1977 law.
The decision is likely to have far-reaching effects, affecting global trade, consumers, companies, inflation and every American’s pocketbook. In recent weeks, Trump has floated plans to roll back some tariffs on metals, including steel and aluminum goods, as he and his administration seek to combat an affordability crisis ahead of midterm elections.
Read more: What Trump promised with his ‘Liberation Day’ tariffs – and did he deliver
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Italian exports to the US to grow 7% in 2025 despite Trump’s tariffs
Reuters reports:
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