The US Supreme Court delivered a 6-3 rebuke to President Donald Trump’s sweeping “Liberation Day” tariffs, ruling they exceeded his authority under the 1977 International Emergency Economic Powers Act (IEEPA), but experts warn his immediate pivot to new levies ensures ongoing global trade turbulence.
Chief Justice John Roberts’ majority opinion clarified IEEPA permits import regulation—not taxation via tariffs, a congressional power. The decision, challenging duties up to 145% on China and 50% on partners like India, unlocks potential refunds on $129 billion collected but leaves implementation messy amid litigation.
Trump’s Defiant Response
Trump, learning mid-meeting, blasted the “deeply disappointing” verdict from “fools” including his appointees Gorsuch and Barrett. He swiftly enacted 10-15% replacement tariffs under Section 122 (exempting pharma, ag), vowing to protect US industries despite the setback.
Dissenters Thomas, Alito, and Kavanaugh warned of economic “mess” from abrupt changes.
Implications for India and Markets
India’s exporters (textiles, IT services, pharma) gain partial relief from invalidated highs, yet new blanket duties plus Trump tariff rhetoric dent sentiment—Nifty IT already down 8% weekly. Global freight volumes hinge on legal flux; Oxford Economics estimates $36 trillion revenue hit over a decade.
