Trump’s global tariffs overturned by Supreme Court

By Goli Innocent

The US Supreme Court ruled Friday that President Donald Trump overstepped his authority by imposing broad tariffs on global trade, striking down a key tool he had used to push his economic agenda.

In a 6–3 decision, the conservative-majority court said the International Emergency Economic Powers Act (IEEPA) “does not authorise the President to impose tariffs.” While Trump has often used tariffs as leverage in trade negotiations, his return to the presidency saw unprecedented use of emergency powers to impose duties on nearly all US trading partners.

These measures included “reciprocal” tariffs targeting countries Washington deemed unfair in trade practices, as well as duties on Mexico, Canada, and China linked to drug flows and immigration.

Chief Justice John Roberts noted in the majority opinion that “IEEPA contains no reference to tariffs or duties,” while the three liberal justices joined three conservatives in ruling the emergency tariffs illegal. Justices Brett Kavanaugh, Clarence Thomas, and Samuel Alito dissented.

The ruling leaves intact sector-specific tariffs on steel, aluminium, and other goods, while government investigations could result in more targeted duties in the future.

Average tariffs are expected to drop from 16.8% to about 9.5%, according to EY-Parthenon chief economist Gregory Daco.

The decision could cost the US government $100–$120 billion in tariff revenues, though importers’ refunds remain uncertain.

A lower trade court had blocked most of these tariffs in May, but the case was on hold pending appeal. This Supreme Court decision now finalises that limitation on presidential trade powers.