The Supreme Court has ruled that former President Donald Trump lacked the authority to implement emergency tariffs aimed at curbing illegal drug flows and addressing trade deficits. The divided 6-3 decision found that the International Emergency Economic Powers Act (IEEPA) does not grant the President unilateral power to impose tariffs of unlimited scope and duration during peacetime.
Chief Justice John Roberts, writing for the majority, stated that such authority rests with Congress, emphasizing the limited nature of delegated powers. The ruling noted the absence of historical precedent for any president invoking IEEPA to impose tariffs of this magnitude.
This decision could have significant financial implications for businesses that paid these tariffs. Analysts initially estimated potential refunds of up to $1 billion, but a more recent assessment suggests over $175 billion could be at risk of being refunded.