U.S. Supreme Court ruling against former President Donald Trump’s tariff program

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What the Supreme Court decided

• The U.S. Supreme Court ruled 6–3 that Trump’s sweeping global tariffs were illegal because he did not have the authority to impose them under the International Emergency Economic Powers Act (IEEPA).  
• The court said Congress—the legislative branch—holds the power to impose taxes and tariffs, and a president cannot unilaterally impose broad tariffs under a national emergency law.  
• The tariffs struck down included “reciprocal” duties on many countries that Trump had imposed since 2025.  

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Economic and legal impact

• Analysts estimate that more than $175 billion in tariff collections could be subject to refunds to importers because the tariffs were invalidated.  
• The ruling doesn’t automatically erase all tariffs — some duties based on other laws (like national security tariffs under Section 232) remain in place.  
• The decision reinforces that tariff authority rests with Congress, not the presidency alone.  

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Trump’s reaction and what’s next

• Trump strongly condemned the ruling, calling it “deeply disappointing” and criticizing the justices.  
• He says his administration will pursue alternative legal avenues to impose tariffs — including a proposed 10 % global tariff under a different statute such as the Trade Act of 1974.  
• The ruling creates uncertainty in U.S. trade policy and for global markets as businesses and governments assess how trade relations and tariff structures may change.  

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Why this matters

• This is seen as a major limitation on executive power, reaffirming constitutional checks and balances in U.S. trade and economic policy.  
• Because tariffs affect global imports and costs for businesses and consumers, the decision could have wide-ranging economic effects.