U.S. Supreme Court limits Trump tariff powers under emergency law

The U.S. Supreme Court ruled on Friday that President Donald Trump overstepped his authority by imposing sweeping tariffs under a national emergency law, invalidating several key measures while leaving others in place.

In a 6–3 decision, the court found that Trump’s use of the 1977 International Emergency Economic Powers Act (IEEPA) to introduce wide-ranging tariffs was not authorized by the statute. Chief Justice John Roberts, writing for the majority, said the administration failed to show that Congress had permitted tariffs under the law.

The president asserts the extraordinary power to unilaterally impose tariffs of unlimited amount, duration and scope, Roberts wrote, adding that the IEEPA does not provide such authority.

The ruling invalidates country-specific or “reciprocal” tariffs, which included rates of up to 34% on goods from China and a 10% baseline for other countries. It also blocks a 25% tariff imposed on certain imports from Canada, China, and Mexico that the administration linked to efforts to curb fentanyl flows.

However, the decision does not affect all tariffs introduced by Trump. Measures on steel and aluminum, enacted under separate legislation, remain in force. The ruling also leaves open the possibility that the administration could reintroduce some tariffs using other legal mechanisms.

Financial markets reacted positively to the decision, with stocks rising following the announcement.

The majority opinion was joined by three liberal justices and two conservative justices, Neil Gorsuch and Amy Coney Barrett. Justices Clarence Thomas, Brett Kavanaugh, and Samuel Alito dissented. In his dissent, Kavanaugh noted that the ruling did not address whether the government must return billions of dollars collected from importers and said the financial impact on the U.S. Treasury could be significant.

Under the U.S. Constitution, the authority to set tariffs rests with Congress. The Trump administration had relied on the IEEPA, which allows the president to regulate imports and exports in response to an “unusual and extraordinary threat” to national security, although the law does not specifically mention tariffs. No previous president had used the law to impose such duties.

The case reached the Supreme Court after lower courts ruled against the administration in related lawsuits. Businesses and state authorities had challenged the tariffs, arguing they imposed unpredictable costs and exceeded executive authority.

Several companies that paid the tariffs welcomed the ruling, while groups representing small businesses called for a swift process to refund collected duties. Hundreds of importers have already filed legal challenges seeking compensation.

According to U.S. Customs and Border Protection, tariffs imposed under the emergency law generated about $130 billion in revenue as of mid-December. Trump has cited higher figures, including estimates tied to trade agreements negotiated during his administration.

The case also drew attention to the court’s approach to executive authority. The ruling referenced the “major questions doctrine,” which requires clear congressional approval for policies with significant national impact, although that reasoning did not receive full support from all members of the majority.

A coalition of states led by Oregon, along with several companies, had challenged the tariffs in court, arguing that they represented unconstitutional government overreach. The Supreme Court’s decision provides a definitive interpretation of the limits of presidential power under the emergency law.

Earlier, Qazinform reported that the U.S. House blocked Trump’s Canada tariffs.