The US Supreme Court has ruled by a six-to-three vote that the sweeping system of global tariffs imposed by President Donald Trump was illegal. According to AP News, the court concluded that the president exceeded his authority when he based the tariffs on the 1977 International Emergency Economic Powers Act (IEEPA), which the justices said does not apply to the imposition of import tariffs.
The majority opinion emphasizes that the power to set tariffs belongs exclusively to the legislature, the U.S. Congress, under the U.S. Constitution. The Chief Justice John Roberts said that the emergency economic powers allow the president to respond to crisis situations by, for example, freezing assets or restricting transactions, but not to introduce across-the-board trade measures comparable to a new tax.
Reuters pointed out that the verdict represents one of the harshest judicial rebukes of presidential use of executive power in modern US history. The court also relied on the so-called „substantial questions“ principle, which requires the government to have clear and explicit authorization from Congress for economically significant actions.
The Trump administration introduced so-called reciprocal tariffs on imports from virtually most of the world in 2025, presenting them as a tool to protect US industry and reduce the trade deficit. However, according to analyses cited by The Guardian, the measures have led to higher costs for US companies and consumers and have caused tensions with trading partners in Europe and Asia.
Economists now expect significant legal and financial consequences. Reuters reports that up to around $175 billion in tariffs may be called into question, with some companies already considering lawsuits to recover them. Financial markets reacted to the decision by rising as investors anticipate lower trade barriers and a more stable environment for international trade.
Trump criticised the ruling and indicated that his team was looking for alternative legal ways to maintain part of the safeguards. However, legal experts agree that the ruling will significantly limit the ability of future presidents to unilaterally interfere in trade policy without congressional approval. Thus, the verdict not only nullifies specific tariffs, but also redefines clearly the balance of power between the president and lawmakers on matters of the U.S. economy.
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