The United States Supreme Court has delivered a major setback to President Donald Trump’s economic agenda by striking down the global tariffs imposed by his administration on imports from countries worldwide. In a 6-3 majority verdict issued on February 20, the court ruled that the president does not have unlimited authority under the International Emergency Economic Powers Act to impose sweeping tariffs. The judgment clarified that the power to levy taxes and duties rests exclusively with Congress, and that the president overstepped his constitutional limits by unilaterally enforcing the measures under the guise of a national emergency.
As a consequence of the ruling, the federal government may now be required to refund more than $175 billion collected through these tariffs to affected companies. Analysts warn that such repayments could have a significant impact on the US budget and fiscal planning. Chief Justice John Roberts, in the majority opinion, emphasized that invoking a national emergency does not grant the executive branch blanket authority to impose trade taxes without congressional approval.
During his second term, Trump had introduced additional tariffs ranging from 10 percent to 50 percent on imports from countries including China, Mexico, Canada, and India. The administration justified the move as necessary to curb fentanyl inflows, address trade imbalances, and protect domestic industries. Several countries, including India, challenged the tariffs, and the ruling is expected to provide relief to exporters, particularly in sectors such as information technology, steel, and pharmaceuticals.
Reacting strongly to the verdict, Trump criticized the decision as detrimental to the US economy and favorable to foreign corporations. However, he asserted that he has a “Plan B” in place and would explore alternative legal avenues to reinstate the tariffs. The Supreme Court’s ruling is being viewed as a pivotal moment in the global trade dispute, reinforcing constitutional limits on presidential authority while potentially boosting confidence in international markets.