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The U.S. Supreme Court, by a 6-3 vote, overturned the broad global tariffs imposed by President Donald Trump under the International Emergency Economic Powers Act (IEEPA). The court ruled that the president could not unilaterally impose import tariffs using this law, as the tariffs exceeded Congress's constitutional authority to regulate taxation and trade. Chief Justice John Roberts' majority opinion emphasized that the law's "regulatory" power did not mean it could impose tariffs. The dissenting justices were Clarence Thomas, Samuel Alito, and Brett Kavanaugh.
This decision invalidates a large portion of the reciprocal tariffs the Trump administration had implemented since 2025 and is seen as potentially impacting an estimated $160-200 billion in tariff revenue. White House officials indicated that tariffs could be reimposed using remaining legal powers.
President Trump reacted strongly to the Supreme Court's decision. During a private meeting with governors, he reportedly used the phrase "this is a disgrace" when he first learned of the decision. Later, at a press conference in the White House, he stated:
"The Supreme Court's decision is extremely disappointing. I am ashamed of some of the judges, I am truly ashamed that they lacked the courage to do what is right for our country. They lack patriotism and are disloyal to the Constitution. To be honest, those judges are a disgrace to our nation."
Trump implied the decision was politically motivated, directly targeting the dissenting judges and stating that they would continue the tariffs through alternative means. The White House announced that "Plan B" would be implemented.
The decision is seen as a significant turning point in US trade policy. Many economists note that the cancellation could lead to potential refunds for importers and create volatility in global markets. Trump, however, continued his reaction by saying, "We will try every way to protect American workers and producers."
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