In a landmark 6 3 decision, the Supreme Court ruled that President Donald Trump violated federal law by unilaterally imposing sweeping global tariffs under emergency powers. The decision marks one of the most significant setbacks for Trump’s second administration and a defining moment for the limits of executive authority over the US economy.
Writing for the majority, Chief Justice John Roberts stated that the president claimed extraordinary power to impose tariffs of unlimited amount duration and scope without clear authorization from Congress. The court concluded that the International Emergency Economic Powers Act does not grant such authority.
Justices Amy Coney Barrett and Neil Gorsuch joined Roberts and the three liberal justices in the majority. Justices Clarence Thomas, Samuel Alito and Brett Kavanaugh dissented.
At issue were the so called Liberation Day tariffs and additional duties placed on imports from China Mexico and Canada. Some tariffs reached as high as 145 percent. The administration argued that the emergency law allowed the president to regulate importation during a national emergency. However the court emphasized that when Congress grants tariff authority it does so clearly and with constraints.
The ruling leaves unresolved what will happen to more than 134 billion dollars already collected from over 300000 importers. Lower courts are expected to determine whether refunds are required and how they should be processed.
The case represents one of the most consequential economic disputes to reach the high court in years. It reinforces the principle that major economic decisions especially those involving taxation like tariffs require explicit congressional approval rather than unilateral executive action.
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