The US Supreme Court ruled 6-3 against President Donald Trump’s sweeping global tariffs imposed under the International Emergency Economic Powers Act (IEEPA), declaring they exceed presidential authority.
Landmark Ruling Details
Chief Justice John Roberts’ majority opinion stated IEEPA’s “regulate… importation” clause does not authorize tariffs, rejecting Trump’s “extraordinary” claim without explicit congressional approval. Justices Thomas, Alito, and Kavanaugh dissented, arguing alternative statutes could support similar duties.
Trump’s Immediate Response
Trump lashed out at the “ashamed” justices and announced a 10% global tariff using trade deficit authorities unused in 50 years, putting recent US-India deals (tariffs cut to 18%) at risk. Markets surged post-ruling, with dollar weakening and yields rising amid uncertainty.
Global Trade Implications
The decision nullifies IEEPA-based duties generating $129B revenue, leaving refunds unclear. Lower courts had already deemed them illegal; Trump’s “reciprocal” tariffs now face new legal hurdles. India benefits short-term as tariffs drop to 10% from February 24, boosting exports temporarily.
