Supreme Court strikes down Trump's sweeping global tariffs in 6-3 ruling, dealing major blow to his economic agenda as he immediately imposes new 10% temporary tariff under alternative law and threatens lengthy court battles over $133 billion in potential refunds.
The Supreme Court struck down President Trump's far-reaching global tariffs on Friday in a 6-3 decision, ruling that the president overstepped his constitutional authority. Chief Justice John Roberts wrote that the Constitution clearly gives Congress, not the president, the power to impose taxes including tariffs. Trump had used the 1977 International Emergency Economic Powers Act to levy duties ranging from 10% to 50% on nearly every country, but the court found this law does not grant such sweeping tariff powers. Three conservative justices dissented, with Justice Brett Kavanaugh writing the tariffs "may or may not be wise policy" but are "clearly lawful."
Trump responded by calling the ruling "deeply disappointing" and "ridiculous," saying he was "absolutely ashamed" of the six justices who ruled against him, including two he appointed. Within hours of the decision, Trump signed an executive order imposing a new 10% global tariff under Section 122 of the 1974 Trade Act, which allows temporary tariffs for 150 days. He also announced plans to use other legal authorities including Section 301 investigations to reimpose tariffs, though these require lengthier processes. The administration had collected more than $133 billion from the now-invalidated tariffs as of December.
The ruling opens thorny questions about potential refunds for billions in tariff payments, though the court did not address this issue. Justice Kavanaugh warned the refund process would likely be a "mess." The decision weakens Trump's negotiating position with trading partners and injects new uncertainty into global trade, though many sectoral tariffs imposed under different laws remain in place. Wall Street reacted calmly, with the S&P 500 rising 0.7%, as many investors had anticipated such a ruling. European officials said they remain in contact with the administration seeking clarity on next steps.
Editor’s rationale — Supreme Court ruling strikes down a central pillar of Trump's economic agenda, establishing constitutional precedent that taxation power resides with Congress, not the Executive Branch—a structural constraint on presidential authority affecting nationwide economic policy affecting $133 billion in collected tariffs and estimated $3 trillion impact over a decade. Primary source from Chief Justice Roberts' written opinion and multiple official statements verify the decision.