Supreme Court strikes down much of Donald Trump's tariff policy

The Supreme Court ruled Friday that President Donald Trump exceeded his authority by imposing a sweeping set of tariffs through an emergency law, in a decision that deals a major blow to a central tool of his economic and trade policy.

The top court, with a conservative majority, decided the case by six votes to three, concluding that the International Emergency Economic Powers Act (IEEPA) "does not authorize the President to impose tariffs." The ruling thus blocks part of the tariffs that the Trump administration had applied to products from numerous countries, disrupting global trade.

Blow to a key tool of his agenda

The ruling specifically affects tariffs that Trump imposed invoking national emergency powers, including the so-called "reciprocal" tariffs, which reached 34% in the case of China and a minimum of 10% for other countries, as well as 25% tariffs on certain products from Canada, China and Mexico linked to the fight against fentanyl trafficking.

However, the decision does not eliminate all tariffs established during his administration. Those imposed through other laws, such as those applied to steel and aluminum, remain in force.

The ruling represents an unusual setback for the White House, especially considering that the court has a conservative majority of six justices to three.

Limits on presidential power

The U.S. Constitution grants Congress the authority to set tariffs. Although the IEEPA allows the president to regulate international trade during national emergencies, the court concluded that that law does not explicitly authorize the imposition of customs tariffs.

Prior to Trump, no president had used this 1977 legislation to implement tariffs. The case reached the highest court following rulings against the administration in lower courts and lawsuits filed by importing companies and a coalition of states.