Trump's tariffs struck down: Here's what the US Supreme Court said

The United States of America's Supreme Court on Friday ruled that President Donald Trump exceeded his authority by imposing sweeping tariffs under a 1977 emergency law, holding that only Congress has the constitutional power to levy duties and taxes on imports.

It held that the International Emergency Economic Powers Act (IEEPA) does not authorize the President to impose tariffs.The top court ruled that tariffs are a core exercise of Congress’s taxing power under Article I of the Constitution and cannot be inferred from IEEPA’s authority to “regulate… importation.”

Also read: US Supreme Court rules against Trump’s global tariffs imposed under emergency law


The Court rejected government's arguments based on emergency powers and foreign affairs, warning that accepting their position would allow sweeping and effectively unchecked presidential control over tariff policy.

The decision sharply limits executive authority in trade matters and reasserts congressional primacy over taxation.

What was the tariff case about?

The question presented before the Court was whether the IEEPA authorizes the President to impose tariffs. "Shortly after taking office, President Trump sought to address two foreign threats: the influx of illegal drugs from Canada, Mexico, and China, and “large and persistent” trade deficits," the court document mentioned.

Trump had determined that the drug influx had “created a public health crisis,” and that the trade deficits had “led to the hollowing out” of the manufacturing base of US and “undermined critical supply chains.”

Also read: Trump calls US Supreme Court's tariff ruling ‘a disgrace,’ says ‘backup plan’ ready: Report

He also declared a "national emergency" as to both threats, deeming them “unusual and extraordinary,” and invoked his authority under IEEPA to respond.

The Supreme Court said that Trump "imposed tariffs to deal with each threat."

As to the drug trafficking tariffs, the US President imposed a 25% duty on most Canadian and Mexican imports and a 10% duty on most Chinese imports.

In response to the trade deficit (“reciprocal”) tariffs, he imposed a duty “on all imports from all trading partners” of at least 10%, with dozens of nations facing higher rates. Since imposing each set of tariffs, the President has issued several increases, reductions, and other modifications," the SC noted.

What did SC conclude on Trump's tariffs?

The Supreme Court concluded that IEEPA does not authorize the President to impose tariffs to deal with the declared drug trafficking and trade deficit emergencies.

However, the court's decision was 'splintered' as three justices out of six interpretted IEEPA not to authorize tariffs as a matter of ordinary statutory interpretation. Three other Justices, including the Chief Justice, leaned on the "major questions canon of statutory interpretation to resolve this case".

Citing the Constitution, the Chief Justice said that Congress shall have power to lay and collect taxes, duties, imposts and excises.

"The Government thus concedes that the President enjoys no inherent authority to impose tariffs during peacetime. It instead relies exclusively on IEEPA to defend the challenged tariffs," the court document mentioned.