Trump Criticizes Supreme Court Over Tariff Ruling

- The Supreme Court's 6-3 decision invalidated tariffs Trump implemented under the International Emergency Economic Powers Act of 1977 (IEEPA). Chief Justice John Roberts, writing for the majority, stated that the IEEPA "does not authorize the President to impose tariffs." - This ruling specifically affects the broad "Liberation Day" tariffs announced on April 2, 2025, and other levies on countries like China, Canada, and Mexico that were justified by invoking national emergencies. However, it does not impact tariffs imposed under other laws, such as the Section 232 tariffs on steel and aluminum. - In response to the ruling, Trump immediately announced his intention to use a different law, Section 122 of the Trade Act of 1974, to impose a new global tariff of 15%. This authority is more limited, allowing for temporary tariffs for up to 150 days to address balance-of-payment issues, unless Congress approves an extension. - The now-illegal IEEPA tariffs had already collected over $160 billion. The Supreme Court's decision did not specify whether or how this money should be refunded, creating significant uncertainty for importers and sparking calls from business groups like the U.S. Chamber of Commerce for swift repayments. - The legal challenge, *Learning Resources, Inc. v. Trump*, argued that the Constitution grants Congress the sole authority to levy taxes and regulate foreign commerce, a power it did not delegate to the president through the IEEPA. Lower courts had consistently ruled against the administration before the case reached the Supreme Court. - Economists and business groups have pointed out that the cost of these tariffs has been largely borne by U.S. businesses and consumers. Major retailers like Walmart have previously cited the tariffs as a reason for raising prices on certain goods.