Landmark SCOTUS ruling finds Trump tariffs are unlawful

The Supreme Court issued a landmark decision against President Trump’s global tariff strategy on Friday, ruling 6-3 that his plan to use an emergency powers law to impose sweeping tariffs is unconstitutional.

How we got here: The dispute centered on the 1977 International Emergency Economic Powers Act, or IEEPA, which Trump invoked last year to justify two major rounds of tariffs.

• In February 2025, he used the IEEPA to impose duties on Canada, Mexico, and China tied to border security and fentanyl trafficking.
• On April 2, a day Trump dubbed “Liberation Day,” he announced a broad 10% tariff on imports from nearly every country, along with higher rates for select nations.

The IEEPA gives US Presidents the authority to “regulate” imports in response to national emergencies. Trump has claimed the wording of the IEEPA allows him to unilaterally impose tariffs upon declaring that America’s trade situation represents a national emergency.

SCOTUS had other opinions

Writing for the majority, Chief Justice John Roberts said that while the IEEPA allows the president to regulate imports in some ways, it doesn’t clearly authorize tariffs. Because tariffs function as taxes and have historically been controlled by Congress, the majority opinion concluded Trump exceeded his authority by not receiving explicit approval from lawmakers.

• The dissent from Justice Brett Kavanaugh—joined by Clarence Thomas and Samuel Alito—argued the majority’s decision draws an odd line where the President can block all imports from a country, but can’t impose even a $1 tariff.
• Kavanaugh also warned that refunding previously collected tariffs could become a “mess,” particularly if companies have already passed costs on to consumers.

What comes next?

President Trump and admin officials say they plan to explore other options for implementing the President’s tariff agenda outside of the IEEPA, with Trump calling the SCOTUS decision "deeply disappointing" and referring to some Justices as “unpatriotic.”

• Hours after SCOTUS’ decision on Friday, Trump announced a new 10% global tariff under the Trade Act of 1974, which allows the President to enact tariffs of up to 15% for 150 days without congressional approval.
• On Saturday, Trump said the temporary global tariff would increase to 15%.
• A small portion of Trump’s tariffs enacted last year—like sector-specific duties on steel, aluminum, autos, and timber—are still in effect, since they don’t rely on the IEEPA.

What about refunds?...The Court’s ruling opens the door for companies to request refunds on the ~$133 billion in tariff revenue federal agencies have already collected—but Justices didn’t say whether the US gov’t should be on the hook for payments, nor mention any process for returning funds.

Experts say US importers will eventually receive some or all of their money back from tariffs, though the unprecedented process could take 12-18 months, and will likely involve a combination of Customs and Border Protection, the Court of International Trade, and other lower courts.

📊 Flash poll: Do you agree or disagree with SCOTUS’ decision to strike down the vast majority of President Trump’s tariff agenda?

• Agree
• Disagree
• Unsure/other