WASHINGTON—The Supreme Court on Friday struck down President Donald Trump’s sweeping tariffs imposed last year under a national emergency declaration, ruling that the statute he relied upon does not authorize the executive branch to levy broad import duties.
In a 6-3 decision, the justices held that the International Emergency Economic Powers Act does not grant the president authority to impose tariffs, affirming a lower court ruling that invalidated the levies.
Chief Justice John Roberts wrote the court’s opinion, joined by justices Sotomayor, Kagan, Gorsuch, Barrett, and Jackson in holding that the law does not authorize tariff powers. Three justices — Kavanaugh, Thomas and Alito — dissented.
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The ruling represents a significant setback for the President’s use of tariffs as a centerpiece of his economic and foreign policy strategy. The administration had argued that the emergency law gave President Trump wide latitude to regulate foreign commerce in response to national security and economic threats. They also have said they will find other avenues to levy tariffs in the event of an unfavorable ruling, without providing further specifics.
The decision leaves unresolved questions about the billions of dollars in duties already collected under the policy. The court’s opinion addressed statutory authority and jurisdictional issues but did not directly spell out how previously paid tariffs should be handled, setting the stage for potential follow-up litigation or administrative action.
President Trump had used the emergency powers law to impose tariffs on a wide range of imports, including furniture, electronics and consumer goods, arguing the measures were necessary to protect national security and reduce trade deficits.
Business groups and importers had challenged the tariffs, contending that Congress — not the President — holds constitutional authority over taxation and trade policy.
The National Retail Federation issued a statement today in response to the ruling, adding that the decision added needed clarity for the retail industry.
Executive Vice President of Government Relations David French said: “The Supreme Court’s announcement today regarding tariffs provides much-needed certainty for U.S. businesses and manufacturers, enabling global supply chains to operate without ambiguity. Clear and consistent trade policy is essential for economic growth, creating jobs and opportunities for American families.
“We urge the lower court to ensure a seamless process to refund the tariffs to U.S. importers. The refunds will serve as an economic boost and allow companies to reinvest in their operations, their employees and their customers.”
