The United States Supreme Court has struck down former President Donald Trump’s wide-ranging global tariff policy, declaring it unlawful in a landmark six-to-three decision that reshapes the country’s trade direction.
In its ruling on Friday, the conservative-leaning court held that the 1977 International Emergency Economic Powers Act does not grant the president authority to impose sweeping tariffs. The law, commonly known as IEEPA, had been cited by Trump as the legal basis for placing duties on nearly all US trading partners during his second term.
Chief Justice John Roberts, delivering the majority opinion, stated that the statute makes no mention of tariffs or customs duties. The court reasoned that if Congress intended to give the executive branch such extensive powers, it would have clearly stated so in the legislation, as it has done in other trade-related laws.
The judgment was supported by the court’s three liberal justices alongside three conservative members. However, Justices Brett Kavanaugh, Clarence Thomas and Samuel Alito dissented.
The ruling does not affect targeted tariffs previously imposed on specific sectors such as steel and aluminium, nor does it halt ongoing investigations that may result in additional industry-focused trade measures.
The decision represents one of the most significant legal setbacks for Trump since his return to office. During his second term, he expanded the use of emergency economic powers to introduce “reciprocal” tariffs against countries the US accused of unfair trade practices. Additional duties were also applied to imports from Mexico, Canada and China, linked to concerns over immigration and drug trafficking.
Earlier in May, a federal trade court had already determined that the administration exceeded its authority with the broad tariffs, blocking many of them. That order was temporarily suspended while the case moved to the Supreme Court.
Despite the court’s ruling, some analysts believe alternative legal mechanisms could be used to reinstate similar measures. KPMG chief economist Diane Swonk cautioned that although financial markets reacted positively to the news, the situation remains fluid and further trade actions are still possible.
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