The Supreme Court ruled Friday that President Trump lacks authority under a 1977 emergency powers statute to impose sweeping tariffs on foreign imports, dealing a major blow to the administration’s trade policy.
What’s Happening: The Court held 6-3 that the International Emergency Economic Powers Act does not authorize the President to impose tariffs, even during declared national emergencies. The ruling invalidates tariffs Trump imposed on imports from multiple countries, including China, Mexico, and Canada.
What’s Important: Chief Justice John Roberts wrote that act’s language allowing the President to “regulate…importation” does not clearly include the power to impose tariffs. The decision requires Congress to explicitly authorize such major economic actions rather than allowing them through general statutory language.
How This Affects Real People: The ruling could force the government to refund billions of dollars already collected from importers who paid the tariffs. It may also create uncertainty around trade agreements the administration says were negotiated using the tariffs as leverage.
The Majority Decision: The Court’s majority was divided on its reasoning. Three justices—Sotomayor, Kagan, and Jackson—said ordinary statutory interpretation shows the act doesn’t authorize tariffs. Three others—Roberts, Gorsuch, and Barrett—relied on the “major questions doctrine,” which requires clear congressional authorization for actions of major economic significance.
The Dissent: Three justices—Kavanaugh, Thomas, and Alito—argued the statute clearly authorizes tariffs because regulating imports has historically included imposing duties. They said Presidents Nixon and Ford imposed similar tariffs under comparable statutory language that courts upheld.
What Changed: Trump imposed the tariffs in early 2025 after declaring national emergencies over drug trafficking and trade deficits. He set duties ranging from 10% to 145% on imports. The tariffs applied to most goods from major trading partners. The tariffs have been a controversial and major component of the Trump administration’s economic policy.
What’s Next: The administration can still impose tariffs under other statutes that explicitly mention duties, including the Trade Expansion Act of 1962 and Trade Act of 1974. Those laws require additional procedural steps emergency economic powers act does not.
B.T. Clark
B.T. Clark is an award-winning journalist and the Publisher of The Georgia Sun. He has 25 years of experience in journalism and served as Managing Editor of Neighbor Newspapers in metro Atlanta for 15 years and Digital Director at Times-Journal Inc. for 8 years. His work has appeared in several newspapers throughout the state including Neighbor Newspapers, The Cherokee Tribune and The Marietta Daily Journal. He is a Georgia native and a fifth-generation Georgian.
