Overview
- Chief Justice John Roberts wrote the majority opinion holding that IEEPA does not authorize the president to impose tariffs, with Justices Barrett and Gorsuch joining the court’s three liberals; Justices Kavanaugh, Alito and Thomas dissented.
- The ruling invalidates most IEEPA-based duties, including the universal “Liberation Day” tariff and country-specific levies on Canada, Mexico, China and others, while sectoral tariffs under other statutes such as Sections 232 and 301 remain in place.
- The decision leaves refunds unresolved after U.S. Customs and Border Protection reported roughly $130 billion collected under the IEEPA tariffs, with independent estimates exceeding $175 billion; Kavanaugh warned the payback process could be a “mess.”
- The administration said it will pivot to other legal tools, and Trump announced plans for a new 10% global tariff under Section 122 of the 1974 Trade Act, which carries narrower, time-limited authority.
- Businesses and 12 states that challenged the tariffs are preparing refund claims and further litigation, and trade analysts say the ruling curtails the president’s ability to threaten blanket emergency tariffs in negotiations.