Supreme Court rules against Trump's tariffs, major test to executive branch powers
U.S. Supreme Court justices ruled 6-3 on Friday to strike down President Trump’s attempt to impose sweeping tariffs using the International Emergency Economic Powers Act.
The decision blocks Trump’s “Liberation Day” tariffs, which included a 10% tariff on imports from most countries and higher reciprocal tariffs on others.
Trump declared the U.S. trade deficit a national emergency in April to invoke IEEPA. Administration lawyers argued the law’s authorization to “regulate importation” during emergencies allowed the president to enact these duties without congressional approval.
Lower courts unanimously rejected this position. The U.S. Court of International Trade ruled that Trump does not possess “unbounded authority” to impose tariffs under emergency powers. The Federal Circuit upheld the block.
During oral arguments in November, the justices challenged the administration. They noted IEEPA does not mention tariffs and pressed for any historical instance where similar language supported tariff authority.
Conservative justices appointed by Trump appeared skeptical about the lack of guardrails on such executive action.
Plaintiffs showed that IEEPA has never been used to impose tariffs in 50 years. They argued the long-standing trade deficit does not qualify as an “unusual and extraordinary threat,” as it has persisted for decades.
Upholding the tariffs would drastically expand executive power at the expense of Congress, they said.
The Justice Department warned that blocking the tariffs would leave the nation exposed to trade retaliation.
Trump characterized these tariffs as “life or death” for the U.S. economy.
The 6-3 ruling imposes a major constraint on the president’s ability to use national emergency laws for trade policy. It requires future tariff actions to follow statutes specifically designed by Congress rather than emergency declarations.
This decision represents a significant check on the expansion of executive authority in economic affairs.