The U.S. Supreme Court delivered a significant rebuke to President Donald Trump on Friday. The court said that his administration broke federal law by putting high tariffs on goods from all over the world without getting clear authority from Congress.
The 6-3 ruling is one of the biggest blows to Trump’s second term and goes against the core of his trade agenda, which has shaped much of his economic and international policies.
Chief Justice John Roberts wrote for the majority that the president went too far by trying to impose tariffs on his own that would last for a long time and cover a wide range of goods. Roberts made it clear that Congress only gives the right to set tariffs in certain ways and with specific limitations. He wrote that in this case, there was no such permission.
“The president asserts the extraordinary power to unilaterally impose tariffs of unlimited amount, duration, and scope,” Roberts wrote for the court.
“In light of the breadth, history, and constitutional context of that asserted authority, he must identify clear congressional authorization to exercise it,” Roberts added.
The verdict is especially interesting because the conservative-majority court had already sided with Trump in a number of high-profile emergency cases, including as those concerning immigration enforcement, changes in leadership at independent agencies, and cuts to federal spending. This time, though, Roberts was not only joined by the three liberal justices on the court, but also by Justices Amy Coney Barrett and Neil Gorsuch.
Justices Clarence Thomas, Samuel Alito, and Brett Kavanaugh dissented.
The administration had made the case in broad terms, saying that tariffs were necessary for the country’s growth. Government lawyers told the court that tariffs made the country “a rich nation” and that limiting the president’s power would hurt the economy. Opponents, including a coalition of small businesses that challenged the duties, countered that the move amounted to an unchecked tax imposed without congressional oversight.
Roberts rejected claims that the president has the right to set tariffs on trade. He said that the Constitution gives the courts a restricted role and that the court was not claiming to be an expert in economics or international affairs.
It was just following the rules set out in Article III. The International Emergency Economic Powers Act, which the administration used as a reasoning, did not provide the government the power to take such broad trade actions.
What will happen to the money that has already been collected remains an enormous concern. Court documents that reference data from U.S. Customs and Border Protection say that as of mid-December, the federal government had collected $134 billion in tariff revenue from more than 301,000 importers. The majority ruling didn’t say whether the money had to be repaid or not.
Justice Kavanaugh, in dissent, noted that the court provided “nothing today” on how or whether refunds should be handled. He warned that untangling the issue could prove complicated and potentially disruptive.
President Trump, speaking at a White House breakfast with governors, called the decision “a disgrace,” according to people familiar with his remarks, CNN reported. The broader legal and financial consequences of the ruling will now likely shift to lower courts, where the practical impact of undoing the tariffs may be decided.
