US Supreme Court Repeals Trump’s Sweeping Tariffs
In a decision described as historic and surprising, the US Supreme Court dealt a major blow to President Donald Trump, when it overturned the sweeping tariffs, he imposed on a number of countries under the International Emergency Economic Powers Act.
The decision, which was issued by a majority of 6 justices to 3, wasn’t just an ordinary legal loss, but was considered by the US media to be a cruel defeat for Trump.
The story began when Trump invoked a 1977 law, the International Emergency Economic Powers Act, as a legal basis for imposing tariffs on imports from several countries, but the Supreme Court has clearly said: “This is illegal”.
Conservative Chief Justice John Roberts, who wrote the majority opinion, put it simply: “Our task today was specific, to decide only whether the ‘import regulation’ power given to the president in this act includes the power to impose tariffs… The answer is: no, not including that”.
Most striking about this decision is the lineup of judges who voted against it.
Alongside Roberts, conservative justices Neil Gorsuch and Amy Coney Barrett, both Trump himself appointees, joined the three liberal justices.
This unusual alliance between conservatives and liberals gave the decision extra weight.
The consequences of this judgment weren’t only theoretical. Immediately after its announcement, US indices jumped to their highest level in more than two weeks, while the dollar fell.
More importantly, economists estimate that the fees collected by the Trump administration under the law have exceeded $175 billion, and that money will likely need to be returned.
But Justice Brett Kavanaugh, who led the opposition and was joined by conservatives Clarence Thomas and Samuel Alito, saw it differently.
In his dissenting opinion, he said the ruling did not necessarily prevent Trump from imposing the fees if he invoked other legal authorities, arguing that the fees were clearly legal textually and historically.
Mixed reactions in the Democratic camp, the joy was palpable.
Senate Minority Leader Chuck Schumer made no secret of his happiness, calling the decision a victory for every American consumer’s wallet, and adding, “Trump’s illegal tariff has just collapsed”.
But Senator Elizabeth Warren made an important point, expressing concern that there is no clear mechanism for recovering the money that consumers and businesses have paid for these fees.
Trump has previously indicated that he will look for alternatives if the court rules against him.
Treasury Secretary Scott Besant said the administration wouldn’t give up easily, and said it would use other legal justifications to keep the fees.
Looking ahead, this decision opens the door to broader questions about the limits of presidential power in trade policy.
The Supreme Court has set a clear red line, but it has left the door open for the possibility of other legal mechanisms being used.
The Canadian Chamber of Commerce, which is closely following the dossier, warned that the decision could prompt the United States to use new and sharper mechanisms in its trade policy.
This means that the battle is not over yet, and may have entered a new phase.
In the end, the Supreme Court arguably sent a clear message: Even in times of emergency, there are limits to the president’s power.
