The Supreme Court ruled Friday that President Trump exceeded his constitutional authority when he relied on the International Emergency Economic Powers Act to impose sweeping tariffs on much of the world, delivering a major setback to his trade agenda.
In a 6 to 3 decision, the Court held that the 1977 law does not authorize a president to impose tariffs. Chief Justice John Roberts wrote the majority opinion, joined by the Court’s three liberal justices as well as Justices Amy Coney Barrett and Neil Gorsuch. Justices Clarence Thomas, Samuel Alito, and Brett Kavanaugh dissented.
The majority concluded that the International Emergency Economic Powers Act, known as IEEPA, does not include tariffs among the powers granted to the executive branch. The opinion noted that Congress provided a lengthy list of specific authorities in the statute but made no reference to duties or tariffs, calling that omission significant.
“We hold that IEEPA does not authorize the president to impose tariffs,” the Court wrote, stating that if Congress had intended to grant such authority, it would have done so explicitly as it has in other trade statutes.
The ruling affects President Trump’s so called reciprocal tariffs, including major duties on China and 25 percent tariffs on Canada and Mexico tied to fentanyl trafficking concerns. However, not all of his trade actions were struck down. Tariffs imposed under different statutory authorities, including certain measures on steel and aluminum, remain intact.
Despite the loss, administration officials have indicated that alternative legal pathways remain available. Treasury Secretary Scott Bessent previously pointed to provisions in the Trade Act of 1962 as potential mechanisms to recreate a similar tariff structure, though he acknowledged that IEEPA offered the broadest and most efficient tool.
Leading up to the decision, President Trump defended the tariffs as essential to strengthening America’s economy and national security. He has repeatedly argued that the duties encouraged domestic manufacturing investment and gave the United States leverage in negotiations with foreign governments.
The legal battle centered on whether the tariffs functioned as a tax, placing President Trump’s economic strategy in tension with Congress’ constitutional authority over taxation and trade. Several companies, including Costco, challenged the tariffs in federal court, arguing they would drive up prices for consumers. After the U.S. Court of Appeals for the Federal Circuit ruled against the administration, the case advanced to the Supreme Court.
President Trump was the first to use IEEPA to impose tariffs. Historically, the law has been used to impose sanctions on foreign adversaries and terrorist regimes. In arguments before the Court, Solicitor General John Sauer maintained that national emergencies tied to the fentanyl crisis and the erosion of America’s industrial base justified the president’s actions.
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