Supreme Court Strikes Down Trump Tariffs
The U.S. Supreme Court has struck down the Trump administration's "reciprocal" tariffs in a landmark ruling. The decision is seen as a major win for China and other trading partners, though President Trump is expected to seek alternative ways to pursue his protectionist agenda.
The Supreme Court's 6-3 decision in *Learning Resources, Inc. v. Trump* centered on the International Emergency Economic Powers Act of 1977 (IEEPA). The majority opinion, authored by Chief Justice John Roberts, asserted that the IEEPA does not grant the president the authority to levy tariffs, a power the Constitution reserves for Congress. This ruling invalidates the broad "reciprocal" tariffs first imposed on April 2, 2025—a day the administration dubbed "Liberation Day"—which set a minimum 10% duty on imports from most U.S. trading partners. Also struck down were the 25% tariffs imposed in February 2025 on certain goods from Canada, China, and Mexico related to a fentanyl-related emergency declaration. The administration had used the IEEPA to justify the tariffs by declaring national emergencies related to trade deficits and foreign trade practices. The reciprocal tariff rates were country-specific and intended to match the duties other nations charge on American exports. Since their implementation, the now-illegal IEEPA tariffs have collected an estimated $160 billion for the federal government. Importers who paid these duties may now be eligible for refunds, with analysts estimating the total potential liability could exceed $130 billion. Within hours of the court's decision, President Trump invoked a different law, Section 122 of the Trade Act of 1974, to impose a new 10% global tariff for a period of 150 days. The administration stated it would also pursue other authorities, such as Section 301, to protect U.S. commerce. This ruling does not affect other tariffs enacted under different legal authorities. Tariffs on steel and aluminum under Section 232 of the Trade Expansion Act, for example, remain in place.
