In a major blow to President Donald Trump’s economic agenda, the United States Supreme Court ruled on Friday that the president exceeded his authority by imposing sweeping global tariffs on U.S. trading partners.
In a 6-3 decision, the conservative-majority court determined that the International Emergency Economic Powers Act (IEEPA), the primary law Trump utilized to enact the trade barriers does not grant the executive branch the authority to levy such tariffs.
Since his return to the presidency last year, Trump has heavily relied on emergency economic powers to implement aggressive, across-the-board duties on nearly all U.S. trading partners.
These measures included “reciprocal” tariffs aimed at practices Washington deemed unfair, as well as specific duties targeting major allies and competitors like Mexico, Canada, and China, primarily cited as retaliation over illicit drug flows and immigration issues.
The Supreme Court’s judgment firmly rejected this approach, stating that “had Congress intended to convey the distinct and extraordinary power to impose tariffs” through the IEEPA, “it would have done so expressly, as it consistently has in other tariff statutes.”
The ruling serves as an affirmation of an earlier decision made by a lower trade court in May. That court had previously found the across-the-board levies to be illegal and blocked them from taking effect, though the injunction was temporarily paused as the government pursued an appeal.
While Friday’s ruling blocks Trump’s broader tariff strategy under the IEEPA, it does not impact all of his trade policies.
The Supreme Court clarified that the decision does not affect sector-specific duties that the administration has separately imposed on imports such as steel, aluminum, and other specific goods.
Formal investigations that could eventually lead to additional sectoral tariffs remain active and unaffected by the ruling.
