Supreme Court Blocks Trump Tariffs in a 6-3 decision that found the president exceeded his authority under the International Emergency Economic Powers Act.
Chief Justice John Roberts wrote that IEEPA contains no reference to tariffs and lacks the clear congressional authorization the administration relied upon.
Two justices appointed by President Trump, Amy Coney Barrett and Neil Gorsuch, joined the majority in the ruling.
Three justices sided with the president, Samuel Alito, Clarence Thomas and Brett Kavanaugh, with Kavanaugh writing a 63-page dissent warning of economic disruption.
The court declined to resolve whether importers who paid the invalidated tariffs must be refunded, leaving that question unsettled.
The ruling means the federal government must find a way to address tariffs collected from importers, a logistical and fiscal challenge.
Estimates of revenue from the now-invalidated tariffs varied, with Penn Wharton Budget Model putting the number at more than $175 billion, as reported by Reuters.
Another report cited U.S. Customs and Border Protection data showing roughly $130 billion in revenue from the tariffs as of mid-December.
The decision marked a significant rebuke of the administration’s emergency-based tariff framework and narrowed the president’s rapid-response trade powers.
Administration Response And Reactions
President Donald Trump called the ruling a disgrace, and within hours announced a 10 percent global tariff under Section 122 of the Trade Act of 1974.
The administration said the new tariff would be applied by executive order, and Section 122 allows temporary surcharges up to 15 percent for a maximum of 150 days.
By law such Section 122 actions expire after 150 days without congressional authorization, creating a built-in time limit on the executive order.
Officials said existing Section 232 and Section 301 tariffs would remain fully in place despite the court’s IEEPA ruling.
New York Attorney General Letitia James called the court’s decision a vindication, saying the tariffs caused immense economic chaos.
House Minority Leader Hakeem Jeffries urged the president to refrain from further unilateral tariff actions, calling the approach a complete and total failure.
Senate Minority Leader Chuck Schumer described the ruling as a win for American consumers and urged an end to the trade measures causing higher prices.
Gov. Kathy Hochul said the decision affirmed that the tariffs acted as an unlawful backdoor tax on families, farmers and small businesses.
Manhattan Chamber of Commerce CEO Jessica Walter said the tariffs forced businesses to freeze hiring, raise prices and impaired planning.
Sen. Kirsten Gillibrand cited a Tax Foundation report finding average American families lost $1,000 per household from higher tariffs and could lose up to $1,300 more.
Some congressional Republicans quietly welcomed the ruling, with Senator Mitch McConnell and Representative Don Bacon praising the court’s reaffirmation of congressional authority.
Legal commentator John Yoo suggested the pause on broad tariffs could help the economy by preventing prolonged disruption from sudden levies.
