The US administration under President Donald Trump is facing a new ruling from the Supreme Court of the United States (SCOTUS). In a 6-3 vote, the country's top justices declared the current tariff policy illegal.
SCOTUS considered the question (PDF) of whether the U.S. government is allowed to impose punitive tariffs under a 1977 emergency law (International Emergency Economic Powers Act, IEEPA).
The court ruled in its majority that this law does not provide for tariffs and Trump will even face consequences if he exceeds his powers. The law provides for checks and balances with rules, but not with taxes, the judges argue. Tax checks are the duty of the US Congress, which the US government has completely bypassed with the emergency law.
The US government declared two national emergencies in early 2025 and, based on its customs policy, imposed additional levies, some of which exceeded 100%. On the one hand, Trump cited drug smuggling from Canada, Mexico and China, and on the other hand, trade deficits that would harm the US.
SCOTUS did not give a deadline for when the U.S. government must lift the illegal tariffs. That is likely to be handled by Customs and Border Protection (CBP) in the coming weeks. It will also decide whether tariffs that have already been paid should be refunded.
The US government could use other laws for additional tariffs, which, however, have a significantly stricter framework. In his first term (2017-2021), Trump, for example, invoked the 1974 Trade Act, which allows tariffs of up to 15% for a maximum of 150 days and extensions in time are possible only through Congress.
Although the press releases will range from very select to rare, I said I'd pass...because sometimes the editors hide.
