6–3 verdict says executive overstepped authority under emergency powers law
In a major setback for US President Donald Trump, the Supreme Court of the United States struck down sweeping global tariffs imposed under emergency powers, ruling that the president exceeded his authority.
In a 6–3 decision, the court held that tariffs imposed under the International Emergency Economic Powers Act (IEEPA) were unlawful, stating that the law was not intended to grant the executive branch broad tariff-making authority.
The ruling
The majority opinion emphasised that the US Constitution vests taxing and tariff powers exclusively in Congress.
Quoting the Constitution’s allocation of taxing authority, the justices noted that the Framers gave Congress “alone… access to the pockets of the people,” and that the executive has no inherent peacetime authority to impose tariffs.
The court stated that had Congress intended to grant the “distinct and extraordinary power to impose tariffs” through IEEPA, it would have done so explicitly, as it has in other tariff statutes.
The ruling upheld lower court decisions that found Trump’s use of emergency powers to justify broad-based tariffs unlawful.
Justices divided
The court’s three liberal justices joined three conservatives in the majority. Conservative Justices Brett Kavanaugh, Clarence Thomas and Samuel Alito dissented.
Background on tariffs
In April 2025, Trump imposed what he termed “reciprocal” tariffs on most countries, declaring trade deficits a national emergency.
The administration argued that the tariffs were necessary for economic and national security. However, small businesses and a coalition of US states challenged the move, contending that IEEPA was being stretched beyond its intended scope.
According to federal data, the Treasury collected over $133 billion in import taxes under the emergency powers law. The Congressional Budget Office had estimated that the economic impact of the tariffs could reach $3 trillion over the next decade.
Several companies, including retail giant Costco, have sought refunds through legal action.
Trump reacts
Reacting to the verdict, Trump described the decision as a “disgrace” during a meeting with state governors.
“I have the right to put tariffs on for national security purposes,” he said, arguing that the ruling addressed only a specific application of IEEPA and not tariffs broadly.
The president announced plans to reimpose a 10 per cent global tariff under Section 122 of the Trade Act of 1974, signalling that the legal battle over tariffs may continue.
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It is presidential castration.