Supreme Court Strikes Down Trump-Era Tariffs as Unlawful

The U.S. Supreme Court has struck down two major categories of import tariffs imposed by former President Donald Trump, marking the first time the high court has definitively rejected a policy from his second term.

In a landmark ruling, the justices found that Trump overstepped his authority by imposing the sweeping tariffs without clear authorization from Congress. The decision was supported by a coalition of three conservative and three liberal justices, while three other conservatives—Clarence Thomas, Samuel Alito, and Brett Kavanaugh—dissented.

The invalidated tariffs were levied under separate justifications. The first category, ostensibly to reduce the U.S. trade deficit, was applied to goods from nearly every country. The second set targeted Mexico, Canada, and China, citing the need to combat the flow of illicit fentanyl.

The Court rejected the administration's argument that the International Emergency Economic Powers Act of 1977 implicitly authorized such measures. The ruling does not affect separate tariffs on steel and aluminum enacted under different statutes.

The voided tariffs were projected to generate approximately $1.5 trillion in revenue over a decade. Hundreds of companies have already filed lawsuits seeking refunds from the U.S. Treasury Department.

Reacting to the decision on Truth Social, Donald Trump announced he had signed an order to implement a global 10 percent tariff on all countries.

Trump first imposed targeted tariffs on goods from Canada, China, and Mexico in February 2025, citing the drug crisis. In April of that year, he announced a blanket 10 percent levy on imports from nearly all nations, with higher rates for so-called unfair trading partners. These measures remained in effect throughout the legal challenge.