The US Supreme Court has ruled that President Donald Trump acted beyond his authority in imposing sweeping tariffs under the International Emergency Economic Powers Act (IEEPA), delivering a significant setback to a central pillar of his second-term economic policy.

In a 6–3 decision, the majority emphasized that the Constitution assigns the power to impose taxes and duties to Congress, and that  the IEEPA does not clearly authorize the President to levy tariffs of indefinite scope and duration.

“The President asserts the extraordinary power to unilaterally impose tariffs of unlimited amount, duration, and scope,” Chief Justice John Roberts wrote. “In light of the breadth, history, and constitutional context of that asserted authority, he must identify clear congressional authorization to exercise it.”

“We hold that IEEPA does not authorize the president to impose tariffs,” Roberts continued.

The case was brought by groups of US businesses, supported by 12 states, which argued the measures caused economic harm.

The ruling does not void all of Trump’s tariffs. Duties imposed under other laws — including tariffs on steel, aluminium and automobiles justified on national security grounds under Section 232 of the 1962 Trade Expansion Act — remain in force, as they were not challenged in this case.

Trump had introduced the tariff regime last April, describing it as a bid to reshape what he called an unfair global trade system. Despite later adjustments, the US ended 2025 with an effective tariff rate above 10 per cent — its highest level since the Second World War.

ℹ️ TIME, Financial Times, AP News

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US President Donald Trump in the Rose Garden at the White House in Washington, DC, April 2, 2025 [Carlos Barria/Reuters]
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