Supreme Court Rules Trump’s Tariff Authority Unconstitutional in Landmark Decision

The Supreme Court has ruled 6-3 on Friday that President Donald Trump cannot use the International Emergency Economic Powers Act (IEEPA) to impose tariffs. In a decision that challenges presidential power, the justices held that the statute does not authorize the president to impose tariffs.

Legal analyst and author Thane Rosenbaum explained the majority’s reasoning in an interview. “Cases are simple from the majority opinion,” Rosenbaum said. “The president was relying on a statute that used words like emergency and tariffs.”

Rosenbaum emphasized that the justices focused on textual analysis, stating they do not see an emergency under the statute. He noted that the statute specifies regulating imports, but tariffs are not equivalent to imports. “Taxes are tariffs and taxes are the province of Congress,” Rosenbaum added. “We really can’t let you do this.”

The ruling also clarifies that the president’s attempt to use IEEPA for tariff authority was unconstitutional because it relied on conditions not present in the statute.

A Penn Wharton study estimates that more than $175 billion in U.S. revenue could be subject to refunds if the ruling stands. The Supreme Court did not address the mechanics of potential refunds, but Justice Brett Kavanaugh wrote in dissent that “The United States may be required to refund billions of dollars to importers who paid the IEEPA tariffs.”