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Supreme Court Strikes Down Trump’s IEEPA Tariffs, Curtailing Presidential Trade Power

The 6–3 decision says the emergency law does not permit tariffs, underscoring that Congress holds the taxing authority.

Overview

  • Chief Justice John Roberts wrote for the majority that IEEPA does not authorize tariffs, with Justices Clarence Thomas, Samuel Alito and Brett Kavanaugh dissenting.
  • The ruling invalidates near‑global “reciprocal” and fentanyl‑linked duties tied to IEEPA, while sectoral tariffs imposed under other laws, such as Section 232, remain in place.
  • The Court left refunds unresolved; estimates of IEEPA tariff collections exceed $100 billion, with Penn‑Wharton putting potential liabilities at roughly $175 billion.
  • President Donald Trump said he will replace the voided levies using other statutes, announcing plans for a new 10% global tariff and citing authorities including Sections 232 and 301.
  • Stocks ticked higher after the decision, and U.S. partners reacted quickly, with Canada calling the tariffs unjustified and the U.K. saying it will work with Washington on the implications.