Trump’s global tariffs overturned by US Supreme Court

On Friday, the Supreme Court of the United States overturned President Donald Trump’s sweeping tariffs, imposed under the International Emergency Economic Powers Act (IEEPA) of 1977, by a vote of 6–3. The court upheld a lower court ruling that the president had exceeded his authority in invoking the act, as he lacked “clear authorisation from Congress” to impose the measures.

Trump relied on tariffs as a central instrument of economic and foreign policy during his second term. The measures affected most US trading partners and triggered a global trade dispute. The cases were brought by companies directly affected by the tariffs, as well as by twelve US states.

Economists estimated that tariffs imposed under the IEEPA generated more than $175 billion in revenue, sums that could now be subject to reimbursement following the ruling. The Congressional Budget Office had previously stated that all of Trump’s tariffs combined could generate roughly $300 billion per year.

The president had declared a national emergency linked to trade deficits and drug smuggling. The administration has indicated that it is considering alternative legal avenues to preserve parts of the tariff regime. Until the court’s decision, the measures had formed a key pillar of US trade policy.

(reuters, max)