• Source:JND
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The Supreme Court of the United States on Friday struck down President Donald Trump's far-reaching global tariffs, which he imposed under an emergency powers law, including the "reciprocal" tariffs levied on nearly every other country. In a 6-3 ruling, the top court held that the International Emergency Economic Powers Act (IEEPA) does not empower the president to unilaterally impose broad tariffs.

Chief Justice John Roberts, writing for the majority, stated that the President had exceeded his legal authority. Roberts, citing a prior Supreme Court ruling, wrote that "the President must 'point to clear Congressional authorisation' to justify his extraordinary assertion of the power to impose tariffs," adding, "He cannot."

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1977 Law At The Centre

US President Donald Trump invoked the 1977 law, the International Emergency Economic Powers Act (IEEPA), to impose tariffs on imported goods from nearly all trading partners without seeking the approval of Congress. This included allies like China and India, with the latter facing a 50 per cent tariff until a recent trade agreement brought it down to 25 per cent, with plans to reduce it further to 18 per cent soon.

According to the Supreme Court, the US Constitution grants the power to issue taxes and tariffs to Congress, not the President. Chief Justice Roberts noted that any "extraordinary assertion" of such power requires "clear congressional authorisation", which President Trump did not have, Hindustan Times reported.

The ruling marks an end to the administration's use of law originally intended for freezing assets or imposing sanctions on enemies, rather than imposing broad trade taxes.

What Will Happen Now As SC Strikes Down Trump's Global Tariffs?

The legal challenge was brought by 12 US states and various businesses, who argued that the tariffs represented an unprecedented overreach of presidential authority. Economists, as quoted by Hindustan Times, suggest that the US government may have to refund more than $175 billion (£138 billion) collected under the IEEPA-based program.

The ruling, however, did not clarify whether companies could recover the billions already paid in tariffs. Several businesses, including the warehouse chain Costco, have already filed for refunds in court.

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What's Next For US President Trump?

The US President has indicated that he will pursue a "Game Two" plan to continue his trade agenda, with the administration officials now considering other legal avenues to maintain certain tariffs, such as those related to national security or retaliation against unfair trade practices, Reuters reported.

What Are The Options:

- Section 301 (Trade Act 1974) – For unfair trade practices; used on China; no tariff limit but requires investigation.

- Section 122 (Trade Act 1974) – For trade deficits, permits up to 15 per cent for 150 days; no investigation needed.

- Section 232 (Trade Expansion Act 1962) – For national security; no limit; but requires a Commerce Department review.

- Section 338 (Tariff Act 1930) – Depression-era option; up to 50 per cent; no investigation required; never used before.

However, these alternatives do not offer the same flexibility as the IEEPA, Reuters reported, making it difficult to replicate the full scope of the original policy. While certain tariffs imposed under different laws remain in effect, the ruling effectively curtails the US President's ability to use national emergency declarations as an immediate weapon in global trade.

(With AP Inputs


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