The United States Supreme Court has invalidated the sweeping global tariffs imposed by President Donald Trump.
In a 6–3 ruling on Friday, the court upheld a lower court’s decision that Trump unlawfully relied on the 1977 International Emergency Economic Powers Act (IEEPA) to introduce the tariffs. The judgment marked a rare defeat for the administration before a Supreme Court that has often sided with Trump in major cases.
Chief Justice John Roberts authored the majority opinion, joined by Justices Neil Gorsuch, Amy Coney Barrett, and the court’s three liberal justices. Justices Samuel Alito, Clarence Thomas, and Brett Kavanaugh dissented.
“The Framers did not vest any part of the taxing power in the Executive Branch,” Roberts wrote, emphasizing that the Constitution grants Congress the authority to set tariffs. The majority did not address whether businesses that paid billions in tariffs would be entitled to refunds.
Speaking in Georgia ahead of the ruling, Trump defended the policy as “common sense,” arguing that tariffs were generating significant revenue and protecting the U.S. economy. He said the country could collect up to $900 billion next year through tariffs unless blocked by the court.
During oral arguments in November, several justices had signaled skepticism about whether the IEEPA — a law intended for national emergencies — authorized the president to impose broad, long-term global tariffs. While the statute allows the president to “regulate” imports and exports during an “unusual and extraordinary threat,” it does not specifically mention tariffs.
Trump had invoked the law to impose “reciprocal” tariffs on goods from nearly all U.S. trading partners, citing trade deficits as a national emergency. These included rates as high as 34 percent on China, a 10 percent baseline tariff on most countries, and 25 percent duties on certain goods from Canada, China, and Mexico tied to concerns over fentanyl trafficking.
In dissent, Kavanaugh argued the tariffs were lawful based on “text, history, and precedent,” regardless of whether they were sound policy.
The ruling does not affect other tariffs imposed under separate statutes, including those on steel and aluminum. However, it significantly impacts the country-by-country measures introduced under the emergency powers law.
Trump could attempt to reinstate similar tariffs using alternative legal authorities. The Congressional Budget Office has estimated that the economic impact of the tariffs could reach $3 trillion over the next decade. Federal data show the Treasury collected more than $133 billion from tariffs imposed under the emergency law, and several companies, including major retailer Costco, have sought refunds through the courts.