Supreme Court Rules Most of Donald Trump's Tariffs Are Illegal

"The US Supreme Court on Friday overturned most of President Donald Trump's tariffs, which could lead to more than $175 billion in tariff refunds for American companies. In a 6-3 decision, the justices ruled that the International Emergency Economic Powers Act (IEEPA)-the law that the Trump administration used to justify many of his sweeping global tariffs-does not grant the president the power of taxation, and tariffs are a form of tax on imports."

"From the beginning, legal scholars have questioned whether IEEPA was meant to cover tariffs at all. In his opinion striking down the tariffs, Chief Justice John Roberts wrote, "It is also telling that in IEEPA's half century of existence, no President has invoked the statute to impose any tariffs, let alone tariffs of this magnitude and scope." Instead, the president "must identify clear congressional authorization to exercise it," he wrote."

Most of President Donald Trump's tariffs were overturned, potentially creating more than $175 billion in refunds for American companies. The ruling held that the International Emergency Economic Powers Act (IEEPA) does not authorize the president to impose tariffs because tariffs function as taxes on imports. Many broad global tariffs since the start of the second term were issued under IEEPA, including so-called "reciprocal tariffs" last April. No president in IEEPA's half century had invoked it to impose tariffs of such magnitude and scope, and clear congressional authorization is required. Three justices dissented. Sector-specific tariffs on steel, aluminum, and copper imposed under different authorities remain unaffected. The president called the ruling a "disgrace" and indicated a backup plan.

Read at WIRED