In a 6-3 decision on Feb. 20, the Supreme Court struck down the “emergency” tariffs imposed by President Donald Trump under the International Emergency Economic Powers Act (IEEPA). The Court ruled that the IEEPA does not grant the president authority to levy tariffs, as that power belongs exclusively to Congress under the Constitution.
The Court held that IEEPA’s power to “regulate… importation” does not include the power to impose taxes or tariffs. The ruling invalidated the “Reciprocal Tariffs” and the “Trafficking and Immigration Tariffs,” which effected Canada, Mexico, and China. Chief Justice John Roberts, joined by justices Neil Gorsuch and Amy Coney Barrett, authored the opinion. Justices Samuel Alito, Clarence Thomas, and Brett Kavanaugh dissented, arguing the law’s text was broad enough to authorize the measures.
Supporters of the Supreme Court’s decision said, “Trump’s approach was never strategic, constructive, or rooted in concern for working people.”
“When used lawfully and as part of a wider strategic policy, tariffs can help protect U.S. jobs, raise labor and environmental standards, and correct corporate-driven trade imbalances that harm workers and communities,” Melinda St. Louis, Global Trade Watch director, said.
All IEEPA-based tariffs officially terminated at 12:00 a.m. ET on Feb. 24. The U.S. Court of International Trade has since ordered the administration to begin processing refunds for the unlawful tariffs, which are estimated to total between $133 billion and $175 billion. Duties imposed under Section 232 (steel, aluminum) and Section 301 (certain China-specific goods) remain in place as they rely on different legal authorities.
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