Supreme Court Deals Major Blow to Trump’s Tariff Policy

In a landmark decision on this morning, the U.S. Supreme Court ruled that most of the sweeping tariffs introduced by Trump were illegal, rejecting the core legal justification the administration used to impose them. The 6-3 majority opinion significantly curtails presidential authority in shaping trade policy and marks a major setback for a central plank of Trump’s economic agenda.

At issue was Trump’s use of the International Emergency Economic Powers Act (IEEPA), a 1977 statute originally intended to empower presidents to regulate economic transactions during national emergencies. Trump’s administration invoked IEEPA to justify wide ranging tariffs on imports from nearly every major trading partner including broad “reciprocal” tariffs announced in 2025 arguing that continued trade deficits and other economic pressures constituted a national emergency.

Chief Justice John Roberts, writing for the majority, emphasized that the Constitution’s text clearly vests the power to levy taxes and tariffs in Congress, not the executive branch. The Court found that using emergency powers to impose tariffs exceeded the authority IEEPA grants and could not substitute for clear congressional authorization.

The ruling has immediate financial implications. Economists estimate that more than $175 billion in tariff revenue collected under the emergency powers framework could be subject to refunds, as importers may seek reimbursement for duties now deemed unlawful. Some estimates suggest the figure could even exceed that level, with roughly $179 billion estimated collected since the tariffs began in early 2025.

All I know as a consumer I paid for those tariffs with the price increases passed to us. I want my money back too!