WASHINGTON, D.C. — In a major decision reshaping presidential trade authority, the Supreme Court on Friday ruled that President Donald Trump exceeded his legal powers by imposing sweeping tariffs under a national emergency statute.
In a 6–3 ruling, the justices found that Trump’s use of the 1977 International Emergency Economic Powers Act (IEEPA) to levy broad “reciprocal” tariffs was not authorized by the law. The invalidated measures include tariffs as high as 34% on China, a 10% baseline tariff on other nations, and a 25% tariff on certain goods from Canada, China and Mexico tied to fentanyl enforcement concerns.
The Court emphasized that the Constitution grants Congress the power to set tariffs and that IEEPA does not explicitly mention taxation authority. No prior president had used the statute to impose large-scale import duties. Lower courts had ruled against the administration in lawsuits brought by businesses and a coalition of states led by Oregon.
The decision does not affect separate tariffs on steel and aluminum enacted under different statutory authority. Trump could attempt to reimpose some tariffs through alternative legal pathways.
According to U.S. Customs and Border Protection data, the emergency-based tariffs generated approximately $130 billion in revenue as of mid-December.
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