The Supreme Court of the US has ruled that President Donald Trump’s global tariffs are unlawful, effectively terminating a key trade policy enacted during his second term.
In a 6-3 decision authored by Chief Justice John Roberts, the court found that Trump overreached his authority when he imposed wide-ranging levies under the 1977 International Emergency Economic Powers Act (IEEPA).
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The ruling removes a major instrument used by Trump to alter US trade policy and collect substantial tariff revenue from companies importing foreign goods.
Following the Supreme Court’s decision, which did not address whether previously collected tariffs must be refunded, businesses began filing lawsuits seeking reimbursement.
The government has collected at least $130bn in tariffs through IEEPA, but legal uncertainty remains regarding potential repayments, with lower courts expected to resolve this matter.
In response to the court’s decision, Trump announced plans to reintroduce global import tariffs under different legal authorities.
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By GlobalDataInitially proposing a 10% tariff on all imported goods, he later stated he would increase the rate to 15% under Section 122 of the 1974 Trade Act, which allows temporary tariffs without congressional approval for up to five months.
The Supreme Court majority included three conservative and three liberal justices who agreed that Congress had not clearly authorised such broad executive action in the IEEPA statute.
Trump initially imposed tariffs on Canada, Mexico and China in early 2025, citing efforts to prevent illegal drugs entering the US and seeking to reduce trade deficits.
He later expanded these measures with a general tariff on imports from nearly all countries.
Legal challenges followed from small businesses and Democratic-led states, contending that Trump’s approach effectively constituted an unauthorised tax on Americans.
Prior to the Supreme Court’s intervention, three lower courts had ruled against the administration, concluding that Trump lacked statutory authority for such sweeping measures.
The newly proposed 15% tariff is set to replace existing deals between the US and various trading partners under Section 122 of the Trade Act.
However, products like critical minerals and pharmaceuticals are exempted from these new duties.
