The United States Supreme Court ruled in a 6-3 decision that a 1977 law did not allow presidents to impose tariffs. The court struck down tariffs that Donald Trump, President of the United States, had enacted under the International Emergency Economic Powers Act. John Roberts, Chief Justice, stated that the act contained no reference to tariffs or duties.
Three liberal justices joined three conservatives in the majority. Brett Kavanaugh, Clarence Thomas, and Samuel Alito dissented.
The ruling upheld lower court findings that the tariffs violated the law. Trump had nominated two justices who voted against him. The decision marked his largest Supreme Court loss since he returned to office.
Trump’s Response
Trump responded with anger. He alleged foreign influence on the court without evidence. “I’m ashamed of certain members of the court, absolutely ashamed, for not having the courage to do what’s right for our country,” Trump told reporters.
However Trump vowed to impose a uniform 10 percent tariff on all imports using other authority. “In order to protect our country, a president can actually charge more tariffs than I was charging in the past,” Trump said. He insisted the ruling made him more powerful.
Economic Implications
The ruling did not affect sector-specific duties on steel and aluminum. Additionally, government probes for more tariffs continued. Gregory Daco, EY-Parthenon chief economist, estimated a $140 billion revenue loss for the government.
Yale University’s Budget Lab calculated that consumers faced a 9.1 percent effective tariff rate after the decision, down from 16.9 percent. The lab noted this remained the highest rate since 1946, excluding 2025.
Reactions from Business and Politics
Business groups welcomed the ruling. The National Retail Federation stated it provided certainty for firms and urged refunds for importers.
Democrats celebrated. Chuck Schumer, Senate Minority Leader, called it a win for consumers’ wallets. Moreover Elizabeth Warren, top Democrat on the Senate Banking Committee, warned of no recoup mechanism for small businesses.
Gavin Newsom, California Governor, demanded refunds with interest. “Every dollar unlawfully taken must be refunded immediately — with interest. Cough up!” Newsom said.
International Responses
Meanwhile the European Union studied the ruling and planned close contact with the administration. Britain intended to address trade deal impacts. Canada affirmed the tariffs’ unjustified nature.
