Washington, Feb 20: The U.S. Supreme Court on Friday struck down President Donald Trump’s sweeping global tariffs, delivering a major blow to a central pillar of his economic agenda. The 6-3 decision determined that the administration lacked the legal authority to unilaterally impose the taxes under a 1977 emergency powers law.
Writing for the majority, Chief Justice John Roberts stated that the Constitution assigns the power to levy taxes and tariffs exclusively to the legislative branch. He noted that the International Emergency Economic Powers Act (IEEPA), which the administration cited as justification for the levies, does not grant the executive branch the ability to create new taxes.
“The Framers did not vest any part of the taxing power in the Executive Branch,” Roberts wrote. He affirmed that while the president possesses broad powers during national emergencies, those powers do not extend to the independent imposition of tariffs.
The ruling centers on “reciprocal” tariffs established in April 2025, which targeted nearly every U.S. trading partner. President Trump had argued these measures were necessary to address trade deficits and border security. However, legal challenges from several states and small businesses maintained that the 1977 law was never intended to serve as a catch-all tool for trade policy.
In a dissenting opinion, Justice Brett Kavanaugh asserted that the administration’s actions were consistent with historical precedent regarding the regulation of international commerce. “The tariffs at issue here may or may not be wise policy. But as a matter of text, history, and precedent, they are clearly lawful,” he maintained. Justices Samuel Alito and Clarence Thomas joined the dissent.
The decision has immediate financial implications, as the Treasury has already collected more than 133 billion dollars from the import taxes. Major retailers, including Costco, have already initiated legal steps to seek refunds. Despite the setback, administration officials stated they intend to explore other legal avenues to keep the tariff framework in place.
