In a landmark decision, the Supreme Court of the United States has struck down President Donald Trump’s sweeping “Liberation Day” tariffs, ruling that he exceeded his executive authority by invoking the International Emergency Economic Powers Act (IEEPA).
The Court emphasized that the Constitution grants Congress—not the president—the sole power to levy taxes, including tariffs.
Constitutional Boundaries Reaffirmed
Chief Justice John Roberts, writing for the 6–3 majority, stated that the emergency powers statute could not justify broad and indefinite trade measures. “The Framers did not vest any part of the taxing power in the Executive Branch,” the ruling declared, marking a rare judicial check on unilateral presidential economic action.
The dissenting justices—Brett Kavanaugh, Samuel Alito, and Clarence Thomas—argued that the tariffs were legally permissible, even if politically debatable.
Economic and Market Impact
The tariffs, first announced in April 2025, had imposed duties ranging from 10% to 50% on nearly all imported goods, affecting a broad spectrum of industries.
Wall Street reacted positively to the ruling, with the Dow Jones Industrial Average rising by 207 points and the S&P 500 gaining 33 points immediately following the announcement.
Analysts noted that the decision provides some clarity for businesses, but questions remain over refunds for tariffs already paid.
Global and Domestic Consequences
US trading partners, including the European Union, welcomed the ruling as a stabilizing move for global trade. At the same time, domestic exporters and importers face a transitional period, deciding whether to reverse prior business adjustments or maintain the status quo.
Farm-state Republicans and industries previously affected by retaliatory tariffs may benefit most, while protectionist sectors that relied on Trump’s tariff shields may see new challenges.
A Check on Executive Power
Legal experts say the ruling underscores the judiciary’s role in enforcing constitutional limits. By reasserting Congress’s authority over taxation, the Court has signaled that emergency powers cannot be stretched into permanent tools for unilateral economic policy.
While Trump can still explore alternative legal pathways to impose tariffs, any such moves will likely require more oversight, congressional involvement, or lengthy investigations.
This ruling represents not only a setback for Trump’s trade strategy but also a defining moment for the separation of powers in US economic governance.
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