SCOTUS Rules Trump’s Tariffs Illegal

In a rebuke to President Donald Trump, the U.S. Supreme Court issued a landmark 6-3 decision this morning to strike down the emergency tariffs he has put in place this past year. This invalidates a range of tariffs the Trump administration has imposed under the International Emergency Economic Powers Act, opening the door to billions in refunds for affected businesses and consumers.

• The majority opinion, authored by Chief Justice John Roberts, says President Trump exceeded his legal authority while imposing sweeping tariffs on more than 150 nations without congressional approval by using a law reserved for a national emergency.

The Treasury may be forced to issue over $175 billion in tariff collections to importers, Penn-Wharton Budget Model economists say. Research firm Capital Economics estimated about $120 billion in refunds, which is still 0.5 percent of gdp. In his dissent, Justice Brett M. Kavanaugh warned that the refund process would be a “mess.”

• This decision curbs unilateral presidential authority in U.S. trade policy and reinforces Congress’s role in economic matters.
• More broadly, it could influence global trade dynamics, resetting negotiations with trade partners and potentially easing tensions with the EU and countries like China.

The Trump administration is planning to use other legal pathways to reimpose similar duties, though these may face further challenges. So the effects of this ruling may not be as serious as the president’s enemies hope.

• President Trump will likely still be able to impose tariffs on countries that are active threats to U.S. national security, but this Supreme Court ruling will make it harder to enact sweeping tariffs on dozens of nations without congressional approval. It creates additional legal and economic obstacles for an administration already deeply mired in problems.

America’s $901 billion trade deficit is a curse that makes the nation vulnerable to economic besiegement.