WASHINGTON — In a landmark 6-3 decision Friday, the U.S. Supreme Court invalidated President Donald Trump’s broad use of emergency powers to impose sweeping tariffs, curbing his aggressive trade strategy and signaling limits on executive authority amid a global trade war.
Chief Justice John Roberts, writing for the majority, ruled that Trump’s reliance on the 1977 International Emergency Economic Powers Act (IEEPA) overstepped constitutional bounds. The court invoked the “major questions” doctrine, which demands explicit congressional approval for executive actions with massive economic impact. “The president must point to clear congressional authorization,” Roberts wrote, rejecting the administration’s claim that IEEPA’s power to “regulate” imports extended to tariffs.
The ruling upholds lower court victories for affected businesses, like a family-owned toy importer and 12 mostly Democratic-led states, including New York and California. It targets tariffs generating an estimated $175 billion, potentially requiring refunds and disrupting forecasts of trillions in revenue over a decade.
Trump, who restarted his presidency in January 2025, had branded the duties “reciprocal” measures against trade deficits and issues like fentanyl trafficking from China, Canada, and Mexico. Announced on “Liberation Day” April 2, they hit nearly every trading partner, fueling deals but alienating allies from Brazil to India over unrelated disputes, such as Russian oil purchases.
Dissenters, Justices Clarence Thomas, Samuel Alito, and Brett Kavanaugh, backed Trump’s view of IEEPA as a flexible tool for economic security. Yet even Trump appointees Neil Gorsuch and Amy Coney Barrett sided with liberals in the majority.
Administration officials, including Treasury Secretary Scott Bessent, vowed to pivot to alternatives like national security tariffs or retaliation against unfair practices. These lack IEEPA’s speed and scope, however, complicating Trump’s leverage in negotiations.
The decision reshapes U.S. trade policy, where Congress holds tariff power under the Constitution. It echoes the court’s recent blocks on Biden-era actions, reinforcing conservative justices’ scrutiny of executive overreach while exposing Trump’s tariffs, now at record $195 billion in fiscal 2025 collections as vulnerable.
Global markets reacted warily, with economists warning of uncertainty as trading partners reassess deals forged under tariff threats.