Supreme Court Strikes Down Trump's Tariff Authority

The U.S. Supreme Court rejected President Trump's use of the International Emergency Economic Powers Act to impose tariffs, ruling that it exceeded his authority. The decision has major implications for the global economy, affecting billions in tariffs collected under Trump's administration, which must now be re-evaluated.

The U.S. Supreme Court struck down President Donald Trump's use of tariffs under the International Emergency Economic Powers Act, ruling his actions exceeded legal authority. The 6-3 decision, led by Chief Justice John Roberts, warns against executive overreach in matters of vast economic importance without clear congressional authorization.

Trump leveraged these tariffs, drawn from a 1977 law intended for national emergencies, as an economic tool in global trade negotiations, which led to tensions with international partners and economic instability. The ruling demands Congressional approval for actions with such significant economic consequences.

The decision impacts hundreds of billions collected in tariffs, instigating concerns about revenue losses and potentially requiring refunds. Alternatives are being considered but may not replicate the scope and flexibility of Trump's IEEPA-based tariffs, challenging the administration's trade strategies moving forward.

(With inputs from agencies.)