The U.S. Supreme Court on Friday dealt a major blow to President Donald Trump’s trade strategy, ruling that he exceeded his authority in imposing sweeping tariffs under emergency powers.
In a 6–3 decision, the court said the International Emergency Economic Powers Act (IEEPA) “does not authorize the President to impose tariffs,” rejecting Trump’s attempt to use the law as the legal basis for broad duties on America’s trading partners.
Trump had made aggressive use of tariffs both in his first term and after returning to office last year, but his latest round went further. Invoking emergency economic powers, he imposed so-called “reciprocal” tariffs on countries Washington accused of unfair trade practices, as well as separate duties on Mexico, Canada, and China linked to migration pressures and illicit drug flows.
The justices made clear that such authority rests with Congress. “Had Congress intended to convey the distinct and extraordinary power to impose tariffs” through IEEPA, the court wrote, “it would have done so expressly.”
The ruling upholds earlier decisions by lower courts that found the across-the-board levies unlawful. In May, a federal trade court blocked most of the tariffs, but that decision had been paused pending appeal.
Friday’s judgment does not affect sector-specific tariffs on goods such as steel and aluminum, which were imposed under different statutory authorities. Additional investigations that could lead to further targeted tariffs are still ongoing.
The decision strips Trump of one of his most sweeping economic tools.
