On Friday, February 20th, the Supreme Court ruled that President Donald Trump lacked the authority to impose broad tariffs without congressional approval, delivering a major check on his economic and trade policies. The 6-3 decision invalidated tariffs enacted under the International Emergency Economic Powers Act (IEEPA), a 1977 law allowing presidents to regulate imports and exports during national emergencies.
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Chief Justice John Roberts, writing for the majority, emphasized that the Constitution assigns the power to levy tariffs to Congress, not the president, and that such significant authority requires explicit legislative approval. Justices Neil Gorsuch, Amy Coney Barrett, and the three liberal justices joined the majority opinion. Conservative Justices Samuel Alito, Clarence Thomas, and Brett Kavanaugh dissented, with Kavanaugh asserting that tariffs are a traditional presidential tool and noting that the ruling does not clarify how the billions already collected should be returned.
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The ruling primarily affects Trump’s “reciprocal” tariffs on imports from countries including China, Canada, and Mexico, which were intended to address trade deficits and national security concerns. Tariffs on steel and aluminum, imposed under separate laws, remain in place.
Many U.S. companies, including Costco and Revlon, had already filed lawsuits to recover import taxes, and Treasury officials said funds are available to reimburse them, though repayments could take weeks or months. The decision provides a legal limit on the president’s unilateral power but does not prevent future tariffs under other statutes.
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Foreign business leaders cautioned that the ruling clarifies executive authority but does not eliminate uncertainty, as alternative legal avenues remain for the administration to impose import fees, potentially creating ongoing challenges for global trade.
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