Supreme Court of the United States strikes down Trump tariffs — here’s which levies are affected

The nation's highest court has ruled against President Donald Trump's broad tariffs. The decision invalidates taxes imposed using an emergency powers law. Many other tariffs remain in place. Trump still has options to continue taxing imports aggre...

ANI
Supreme Court of the United States strikes down Trump tariffs — here’s which levies are affected
Supreme Court tariff ruling: A major chapter in U.S. trade policy shifted on Friday after the Supreme Court of the United States ruled 6-3 that President Donald Trump overstepped his authority when he used emergency powers to impose sweeping tariffs on imports from around the globe.

The ruling invalidates a core set of tariffs enacted under the 1977 International Emergency Economic Powers Act (IEEPA), a law traditionally used to impose sanctions after declaring a national emergency. While the decision removes some of Trump’s most expansive import taxes, many other tariffs remain in place under separate legal authorities.

Here’s a breakdown of what was struck down and what still stands, as per a report by The AP.


ALSO READ: SCOTUS ruling: Major issues to watch after the Supreme Court strikes down Trump's tariffs


Which tariffs were blocked by the Supreme Court ruling?


At the center of the case were tariffs Trump imposed using IEEPA. The law allows a president to regulate commerce after declaring a national emergency. Previous administrations used it mainly for sanctions, but Trump applied it to broad-based import taxes.

One of the most significant actions under IEEPA came last spring on April 2, a date Trump labeled “Liberation Day.” On that day, he announced sweeping “reciprocal” tariffs on nearly every country, as per a report by The AP.

ADVERTISEMENT
The policy included tariffs of up to 50% on goods from dozens of nations, alongside a 10% baseline tax on imports from most of the world. The 10% rate took effect in early April. Higher rates were delayed, revised and, in some cases, adjusted after trade discussions. Most of those updated tariffs went into force on August 7, as per a report by The AP.

Donald Trump justified these actions by citing a long-standing trade imbalance between the United States and other countries as a national emergency. Notably, even countries where the U.S. runs a trade surplus faced new import taxes.

ALSO READ: Nancy Guthrie's case update: Sheriff Nanos believes the victim was held near home-here's what he meant


Major trading partners impacted included South Korea, Japan and the European Union. These economies export a wide array of goods to the U.S., including electronics, automobiles, auto parts and pharmaceuticals. Ahead of Friday’s decision, most goods from the EU, Japan and South Korea faced tariffs of about 15%. Recently, Trump had also threatened to raise certain South Korean product tariffs to 25%.
ADVERTISEMENT

All of these measures fell under IEEPA and are now invalidated by the court’s ruling.

What about the ‘trafficking tariffs’ on China, Canada and Mexico?


ADVERTISEMENT
IEEPA was also used earlier in Trump’s second term to impose tariffs on America’s three largest trading partners: China, Canada and Mexico.

The administration declared a national emergency related to undocumented immigration and the trafficking of drugs such as fentanyl and its precursor chemicals. Under that justification, new tariffs were introduced in February 2025.

By the time of Friday’s ruling, imports from Canada faced 35% tariffs and Mexico faced 25% tariffs on goods not compliant with the 2020 United States-Mexico-Canada Agreement. China was subject to a 10% fentanyl-related tariff, down from 20% previously imposed.

These IEEPA-based “trafficking tariffs” are also among those struck down, as per a report by The AP.

China’s key exports to the U.S. include mobile phones, electronics, clothing, toys and appliances. Canada and Mexico are major suppliers of vehicles and auto parts, with Canada also serving as the largest foreign source of crude oil for the U.S. Mexico exports significant volumes of fresh produce and beverages.

ALSO READ: Quote of the Day by George Clooney: 'You learn nothing from success…'—inspiring quotes by the famous actor

How were Brazil and India affected?


IEEPA tariffs extended beyond North America and East Asia. Over the summer, Trump imposed additional duties on Brazil, citing the country’s policies and criminal prosecution of former President Jair Bolsonaro. Brazil already faced the 10% baseline tariff from Liberation Day. The new duties added 40%, pushing total tariffs to 50% on many Brazilian products.

Despite these measures, the U.S. has historically run a trade surplus with Brazil. Brazilian exports to the U.S. include manufactured goods, crude oil and agricultural products such as soybeans and sugar.

India also faced IEEPA-based tariffs. After Liberation Day, Trump imposed a 25% tariff on Indian imports. An additional 25% was later added in response to India’s purchases of Russian oil, bringing total tariffs to 50%.

However, earlier this month, the U.S. and India reached a trade framework agreement. Trump said Prime Minister Narendra Modi agreed to halt Russian oil purchases, and he planned to lower tariffs to 18%. India stated it would eliminate or reduce tariffs on U.S. industrial goods and several agricultural products, as per a report by The AP.

Indian exports to the U.S. include pharmaceuticals, precious stones, textiles and clothing. All of these IEEPA-related tariffs are affected by the Supreme Court’s ruling.

ALSO READ: Word of the Day: Susurration



Which tariffs still remain in place?


Despite the court’s decision, Trump retains other tools to impose tariffs. One of the most significant is Section 232 of the 1962 Trade Expansion Act. This provision allows the president to levy tariffs if imports threaten national security.

Under Section 232, Trump imposed tariffs on steel, aluminum, automobiles, copper and lumber. In September, additional tariffs were rolled out on products such as kitchen cabinets, bathroom vanities and upholstered furniture, as per a report by The AP.

These sector-specific tariffs were not based on IEEPA and therefore remain in effect. In response to rising consumer prices, the administration has recently rolled back certain tariffs. That has included exemptions for specific goods and eliminating duties on items such as coffee, tropical fruit and beef. However, Trump has continued to signal that more sector-based tariffs could be introduced.

ALSO READ: Employee almost quit for a startup, boss stepped in, decision turned into a blessing - many call manager 'class'


FAQs

Did the ruling eliminate all Trump-era tariffs?
No. The decision applies only to tariffs imposed under the International Emergency Economic Powers Act. Sector-specific tariffs under other laws still stand.

Which countries were most affected by the struck-down tariffs?
The invalidated measures covered broad tariffs on nations including China, Canada, Mexico, Brazil, India, Japan, South Korea and members of the European Union.
Download
The Economic Times Business News App
for the Latest News in Business, Sensex, Stock Market Updates & More.
Download
The Economic Times News App
for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
READ MORE
ADVERTISEMENT

READ MORE:

LOGIN & CLAIM

50 TIMESPOINTS

More from our Partners

Loading next story
Business News › News › International › US News › Supreme Court of the United States strikes down Trump tariffs — here’s which levies are affected
Text Size:AAA
Success
This article has been saved

*

+