Supreme Court rules against Donald Trump's global tariffs in humiliation for President

In a significant blow to former President Donald Trump, the U.S. Supreme Court has ruled that his global tariffs exceeded federal authority. The court found that Trump acted beyond the law when he unilaterally imposed sweeping, worldwide tariffs, marking a major defeat for the administration on a central economic and foreign policy issue.

The case was brought by businesses affected by the tariffs from 12 predominantly Democrat-led states, challenging Trump’s use of an executive order to enforce country-specific taxes on imports.

In a 6-3 decision, the court struck down the tariffs. Joining the majority were three liberal justices Ketanji Brown Jackson, Elena Kagan, and Sonia Sotomayor alongside three conservatives, Amy Coney Barrett, Neil Gorsuch, and Chief Justice John Roberts. Justices Brett Kavanaugh, Samuel Alito, and Clarence Thomas dissented.

The ruling emphasized the lack of precedent for such sweeping tariffs under the International Emergency Economic Powers Act (IEEPA). The court noted: “No President in IEEPA’s 50-year history has imposed tariffs of this scale. That lack of historical precedent, combined with the broad authority claimed by the President, suggests these tariffs exceeded legitimate presidential power.”

Markets reacted positively to the ruling. On Friday, major U.S. stock indexes including the Dow Jones Industrial Average, S&P 500, and Nasdaq rose between 0.1% and 0.4%. Companies directly impacted by the tariffs, such as Goodyear and EssilorLuxottica, saw their shares jump 1.3% and 1.9%, respectively. Many other global companies had previously filed lawsuits seeking refunds for duties paid under Trump’s sweeping tariff program.

Trump had argued that the tariffs would boost government revenue, encourage American-made products, and stimulate domestic investment. The April tariffs targeted goods from nearly every country worldwide, though this ruling does not affect separate, sector-specific tariffs on steel, aluminum, and other products. Formal investigations into potential additional tariffs are still ongoing.

The UK government has indicated it is coordinating with the U.S. to assess the impact of the Supreme Court’s decision on British businesses, emphasizing its commitment to supporting trade relations and ensuring that UK businesses continue to benefit from their trading position.