Supreme Court Rules on Tariff Powers

- The Supreme Court's 6-3 decision in *Learning Resources, Inc. v. Trump* invalidated tariffs the president had imposed under the International Emergency Economic Powers Act (IEEPA). The majority opinion, authored by Chief Justice John Roberts, affirmed that the constitutional power to tax, which includes tariffs, is vested in Congress. - This was the first time a president had used the 1977 IEEPA to impose broad tariffs, an act the court noted was not authorized by the statute's text, which contains no explicit reference to tariffs or duties. The ruling struck down not only a base 10% tariff but also so-called "reciprocal" tariffs that were as high as 41% on some countries. - In response to the ruling, the president announced a new temporary 10% global tariff under Section 122 of the Trade Act of 1974. This law allows for temporary duties of up to 15% for a maximum of 150 days to address trade deficits, but requires congressional approval for any extension. - The now-invalidated IEEPA tariffs had generated over $130 billion in revenue since being implemented in 2025. While the Supreme Court's ruling did not specify how or if that money should be refunded, some analysts estimate that U.S. importers could be owed as much as $175 billion. - Tariffs on goods like aircraft parts and imported beverages can increase operating costs for airlines, hotels, and cruise lines, potentially leading to higher prices for travelers. - Economic uncertainty and trade tensions resulting from tariffs can also negatively impact tourism. One 2025 forecast projected a potential 5% decline in international visitor spending in the U.S., representing a loss of $9 billion in tourism-related revenue.