Economy10d ago·4 sources

The Supreme Court delivered a significant blow to President Donald Trump's economic agenda, ruling 6-3 that his administration illegally imposed far-reaching global tariffs under an emergency powers law. The decision centered on the International Emergency Economic Powers Act (IEEPA), which the high court found does not grant the president unilateral authority to set import duties, as taxation power rests with Congress. Chief Justice John Roberts emphasized that the Framers did not vest taxing power in the Executive Branch. While the ruling does not prevent Trump from imposing duties under other laws, it invalidates the "reciprocal" tariffs he levied on numerous countries, including those set in April 2025. The Treasury had collected over $133 billion from these import taxes by December, with a projected decade-long impact of $3 trillion. The court did not specify how companies, such as Costco, could reclaim these billions, a process Justice Kavanaugh's dissent noted would likely be complicated. Challengers, including small businesses, hailed the decision as a "complete and total victory," reaffirming constitutional values. The ruling's implications for future trade deals are yet to be fully clarified.