The Supreme Court ruled on Friday that President Donald Trump does not have the authority to use the federal emergency powers law to impose broad tariffs on imports.
In a 6-3 vote, the Court said the International Emergency Economic Powers Act (IEEPA) does not authorize tariffs.
Chief Justice John Roberts wrote the opinion, with Republican-appointed Justices Brett Kavanaugh, Clarence Thomas, and Samuel Alito dissenting.
The IEEPA empowers the President to “regulate … importation” in response to “any unusual and extraordinary threat” to national security, foreign policy, or the U.S. economy. Whether that authority to “regulate” importation included the power to impose tariffs was a matter of debate among the justices.
“IEEPA contains no reference to tariffs or duties. The Government points to no statute in which Congress used the word ‘regulate’ to authorize taxation. And until now, no President has read IEEPA to confer such power,” Roberts wrote in part, joined by Justices Neil Gorsuch and Amy Coney Barrett.
“We claim no special competence in matters of economics or foreign affairs. We claim only, as we must, the limited role assigned to us by Article III of the Constitution. Fulfilling that role, we hold that IEEPA does not authorize the President to impose tariffs.”
This was the court’s first look at a Trump second-term policy. It upheld a lower appeals court ruling but skipped the issue of refunds for paid tariffs.
The majority split on why: Roberts, Gorsuch, and Barrett relied on the major questions doctrine, which holds that agencies “must be able to show clear congressional authorization” if they intend to exercise “‘major’ regulatory authority,” per the Yale Journal on Regulation.
Democrat-appointed Justices Elena Kagan, Sonia Sotomayor, and Ketanji Brown Jackson stuck to a plain reading of the law.
Kavanaugh dissented, noting that tariffs are a “traditional and common tool” for regulating imports. “The tariffs at issue here may or may not be wise policy. But as a matter of text, history and precedent, they are clearly lawful,” he wrote.
The ruling blocks IEEPA tariffs but allows Trump to use other laws, as he has for steel and aluminum. Tariffs are central to Trump’s plan, used to push better trade deals and boost U.S. factories.
IEEPA tariffs account for about half of the import taxes the government collects each month.
Lawsuits from businesses and 12 states prevailed in lower courts. The administration continued collecting the tariffs during appeals.
At a news conference on Friday, Trump said the Court’s decision was “ridiculous.” He expressed disappointment in some Supreme Court Justices, suggesting they were under the influence of foreign interests. He praised the dissenting judges, saying that he was “very proud” of Justice Kavanaugh, in particular.
Trump stated that all tariffs “remain fully in place and in full force,” adding that he would use his authority under other statutes, such as Section 122 of the Trade Act of 1974, to keep them in place.
That statute allows the President to impose tariffs of up to 15% to address trade deficits, but only for 150 days. Trump said he would sign an executive order imposing a 10% global tariff in the coming days.
