The Supreme Court of the United States has struck down the majority of former President Donald Trump's tariffs, ruling that the Executive Branch lacks the authority to levy such taxes under the International Emergency Economic Powers Act (IEEPA).
In a six-to-three decision, the justices stated that IEEPA has never been used to impose tariffs, especially those of significant scope, and that such an action extends beyond the president's legitimate authority during peacetime.
Trump had argued that the influx of drugs and the weakening of the US industrial base constituted a national emergency justifying the tariffs, a claim rejected by the court.
Following the ruling, Trump criticized the justices and vowed to reinstate the tariffs using "other alternatives." His previous tariff announcements in 2025 had previously caused significant volatility in asset markets, including sharp downturns in cryptocurrency and equities, fueling macroeconomic uncertainty.
Previously, Trump had suggested replacing federal income tax with revenue generated from tariffs, promising substantial tax reductions for individuals and households earning under $200,000 annually. A 100% tariff on China announced in October 2025, for instance, coincided with a significant drop in Bitcoin's price.