US Supreme Court strikes down Donald Trump's global tariffs

The US Supreme Court on Friday (Feb 20) ruled against Donald Trump's tariffs, saying that the US president has exceeded his authority in imposing sweeping duties that disrupted global trade. The decision blocks Trump from using tariffs as a tool, which he used freely to achieve political goals and renegotiate trade deals with countries aligned with his economic agenda.

Despite being a conservative majority, the court ruled six-three in the judgment stating that the International Emergency Economic Powers Act (IEEPA) "does not authorise the President to impose tariffs."

Chief Justice John Roberts delivered the opinion of the court while Justices Clarence Thomas, Samuel Alito and Brett Kavanaugh dissented.

“The president asserts the extraordinary power to unilaterally impose tariffs of unlimited amount, duration, and scope," Roberts wrote. However, the Trump administration “points to no statute" in which Congress has previously said that the language in the International Emergency Economic Powers Act (IEEPA) could apply to tariffs, he said

“In light of the breadth, history, and constitutional context of that asserted authority, he must identify clear congressional authorisation to exercise it," the Chief Justice remarked. He noted that any “extraordinary assertion" of such power requires “clear congressional authorisation", which Trump did not have.

The court also pointed out that "had Congress intended to convey the distinct and extraordinary power to impose tariffs" with IEEPA, "it would have done so expressly, as it consistently has in other tariff statutes."

Notably, the ruling does not apply to sector-specific levies that Donald Trump separately imposed on imports of steel, aluminium, and various other goods under different legal authorities. Trump has long used tariffs as a primary means of exercising power and achieving political goals, often describing them as “beautiful” and hailing duties as a way to solve major national problems, such as the widening trade deficit and rising debt.

The US President even went to great lengths to use these levies as leverage, threatening long-standing partners Canada and Mexico with additional duties over policy disagreements. India has also been on the receiving end of Trump’s tariff wars; for months, New Delhi faced 50 per cent duties, among the highest in the world, before the two countries recently moved toward a new trade deal.

On April 2, 2025, a date he famously proclaimed as "Liberation Day," President Donald Trump signed Executive Order 14257 to launch the most aggressive trade policy in modern American history.

Also Read: India, US to hold talks from Feb 23 on sealing trade deal, signing soon after

Invoking the International Emergency Economic Powers Act (IEEPA) by declaring a national emergency over the US trade deficit, the administration imposed a universal 10% baseline tariff on nearly all global imports. This framework also introduced "reciprocal" duties reaching as high as 50% for major trading partners, aiming to counteract foreign trade barriers and revitalise domestic manufacturing.