Saying he overstepped his authority, The Supreme Court rebuked President Donald Trump’s signature economic policy, ruling 6-3 Friday that President Donald Trump illegally set tariffs on imports from nearly every country in the world, using a 1970s “emergency” statute called the International Emergency Economic Powers Act (IEEPA).
Chief Justice John Roberts wrote in the ruling that the Trump administration had asserted “extraordinary power to unilaterally impose tariffs of unlimited amount, duration and scope.” Roberts pointed to no statute that said the IEEPA could apply to tariffs.
The court’s ruling blocks most of Trump’s sweeping reciprocal tariffs and those the president imposed on Canada, China and Mexico in what he called an effort to stop the flow of illegal drugs.
Trump Calls the Ruling a ‘Disgrace’
Democrats in Congress applauded the decision, saying the tariffs had impinged on Congress’ constitutional authority and hurt average Americans. NBC News reported that some major U.S. trading partners were muted, however, saying they were reviewing the decision and emphasized a need for stability in international trade.
NBC said that the president was informed of the Supreme Court’s decision while he was meeting with a bipartisan group of governors and called the ruling a “disgrace,” according to a person familiar with his reaction. Trump also told people in the room this morning that he had a backup plan.
The White House has not formally commented yet.
The National Retail Federation, a top trade group for retailers and manufacturers, saids the ruling “regarding tariffs provides much-needed certainty for U.S. businesses.”
“Clear and consistent trade policy is essential for economic growth, creating jobs and opportunities for American families,” NRF said. “We urge the lower court to ensure a seamless process to refund the tariffs to U.S. importers.”
“The refunds will serve as an economic boost and allow companies to reinvest in their operations, their employees and their customers.”
Some Tariffs Aren’t Affected
More than $130 billion in tariffs have been collected under the IEEPA law, which the Supreme Court struck down.
CNN reported that during a time when the nation is short millions of homes, the tariffs have pushed building costs higher and that isn’t likely to change.
Many tariffs on the raw materials used to build new homes — such as those on lumber, steel and aluminum — will stay in place, despite the Supreme Court’s decision, CNN said.
Those tariffs were imposed under separate laws allowing tariffs on national security threats or unfairly dumped imports.
