The US Supreme Court has handed down a landmark decision, ruling that former president Donald Trump exceeded his authority when he imposed a wide array of global tariffs—a central element of his trade agenda. The 6–3 verdict is a significant blow to Trump’s efforts to unilaterally reshape America’s trade relationships.
The justices found that the International Emergency Economic Powers Act (IEEPA) does not give presidents the sweeping ability to levy broad-based tariffs on other countries. In its majority opinion, the court explained that if Congress wanted to grant such “distinct and extraordinary power,” it would have done so explicitly, as it has in other trade laws.
Trump had invoked emergency powers to slap tariffs on nearly all major US trading partners, including the controversial “reciprocal” duties on countries accused of unfair trade practices. He also imposed separate tariffs on imports from Mexico, Canada, and China, citing issues ranging from illegal drugs to immigration.
This decision upholds earlier lower court rulings, including a trade court’s finding in May that Trump had overstepped his authority. That ruling had been on hold pending this Supreme Court review, but Friday’s decision definitively blocks the use of IEEPA for such broad tariff actions.
Importantly, the ruling does not impact sector-specific tariffs authorized under different laws—such as those on steel, aluminium, and certain manufactured goods. Ongoing government reviews could still result in new targeted tariffs on specific industries.
Legal experts say the judgment reinforces Congress’s control over tariff powers and redefines the limits of what a president can do in the name of economic emergencies. The outcome is expected to reshape future US trade policy and clarify the boundaries of executive authority in economic matters.
