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Supreme Court Strikes Down Trump’s Emergency-Based Tariffs as White House Plans New 10% Global Duty

The ruling curbs use of the 1977 emergency law by holding that broad tariff power requires explicit authorization from Congress.

Overview

  • In a 6-3 opinion by Chief Justice John Roberts, the Court ruled the IEEPA does not permit the president to impose open-ended tariffs.
  • The decision targets the global “reciprocal” duties and other IEEPA-based measures, leaving sector-specific tariffs under different statutes such as steel and aluminum intact.
  • Roughly $133–134 billion was collected from more than 301,000 importers under the now-invalid tariffs, and questions over refunds are left to lower courts.
  • President Trump announced a new 10% across-the-board tariff under Section 122, which allows up to a 15% levy for 150 days unless Congress extends it, and the administration is also weighing actions under Sections 301 and 232.
  • Economic studies report U.S. buyers absorbed most 2025 tariff costs—Kiel Institute estimates 96%—while JPMorganChase Institute found tariff payments by mid-size firms tripled.