The US Supreme Court has struck down sweeping global tariffs imposed by former President Donald Trump, ruling that he exceeded his authority under the International Emergency Economic Powers Act (IEEPA).
In a 6–3 decision, the conservative-majority court declared that IEEPA “does not authorise the President to impose tariffs.” Delivering the majority opinion, Chief Justice John Roberts stressed that the law contains no reference to tariffs or duties. The court noted that if Congress had intended to grant such sweeping trade powers, it would have done so explicitly, as it has in other tariff statutes.
Why the Ruling Matters
Trump had relied on emergency economic powers to introduce “reciprocal tariffs” on nearly all US trading partners after returning to office last year. The measures targeted countries including Mexico, Canada and China, citing concerns over unfair trade practices, illegal drug flows and immigration.
The ruling upholds earlier lower court decisions that found the across-the-board tariffs unlawful. The court’s three liberal justices joined three conservatives in the majority, while Justices Brett Kavanaugh, Clarence Thomas and Samuel Alito dissented.
Impact on US Trade and Revenue
The decision is expected to significantly reduce US tariff rates. Analysts estimate the average tariff rate could drop from 16.8 per cent to about 9.5 per cent. The federal government may also lose between $100 billion and $120 billion in projected tariff revenue.
Importantly, the ruling does not affect sector-specific tariffs on steel, aluminium and other goods imposed under separate trade laws. Ongoing investigations could still lead to additional targeted duties.
While the judgment limits the use of emergency powers to impose broad tariffs, trade experts say the administration retains other legal avenues — though they require more formal processes and narrower application.
