US Supreme Court Strikes Down Trump Tariffs, Ushering in New Trade Era

According to the International Desk of Webangah News Agency, the U.S. Supreme Court has nullified a broad range of import tariffs imposed by Donald Trump, with a 6-3 vote recorded. This decision, primarily authored by Chief Justice John Roberts, represents not only a legal setback for Trump but also a clear judicial stance against the unchecked expansion of executive authority.

The court determined that the International Emergency Economic Powers Act (IEEPA) does not grant the president the power to impose tariffs and taxes on imports. In the hours following the ruling, Trump announced from the Oval Office that he had signed an executive order for a global 10% tariff on all countries worldwide. This action indicates his intent to proceed, yet it initiates a new legal, political, and economic crisis that could leave the future of U.S. trade policy uncertain for months.

The Supreme Court rejected the Trump administration’s argument that the U.S. trade deficit constituted a national security threat, thereby justifying tariff imposition under the IEEPA. The court emphasized that the word “regulate” in the law does not encompass “levying taxes” or “imposing tariffs,” and the U.S. Constitution explicitly grants Congress the authority to levy taxes and tariffs.

This ruling draws a red line on the executive branch’s use of emergency legislation to implement broad economic policies without explicit congressional authorization. Three dissenting justices argued that a restrictive interpretation of the law hinders the government’s necessary tools in times of economic threat, but their argument was not accepted by the majority.

Trump reacted by calling the ruling “shameful” and stated his administration has a “backup plan.” He has signed a 10% global tariff, likely based on the Tariff Act of 1930, also known as the Smoot-Hawley Tariff Act, or national security provisions such as Section 232.

The judgment has generated considerable uncertainty in global markets, and U.S. trading partners are closely monitoring the situation as the Trump administration seeks alternative measures. Economists express concern that the legal ambiguity surrounding tariffs could lead to a decrease in foreign investment in the United States, further complicating the ongoing debate over American trade policy.