The Supreme Court has delivered a major blow to President Donald Trump’s trade agenda, striking down some of his most sweeping global tariffs and reshaping the landscape of US trade policy.
In a 6-3 ruling on Friday, the nation’s highest court said Trump overstepped his authority by using a decades-old emergency powers law to impose broad import taxes on nearly every country in the world.
The decision targets tariffs enacted under the 1977 International Emergency Economic Powers Act, or IEEPA — a law historically used to impose sanctions, not tariffs. While the ruling invalidates a core group of Trump’s trade measures, many other sector-specific tariffs remain intact.
Here’s what was struck down — and what still stands.
LIBERATION DAY TARIFFS
Trump invoked IEEPA last spring to impose what he called “reciprocal” tariffs. On April 2 — dubbed “Liberation Day” — he slapped tariffs of up to 50% on dozens of countries, along with a baseline 10% tariff on nearly all other imports.
The administration argued the tariffs were justified by a national emergency tied to the US trade deficit — the long-running gap between what America buys and sells globally.
The 10% baseline took effect in early April. Higher rates were delayed and revised over time, with most implemented by August 7 after a series of trade talks and framework agreements.
Major trading partners impacted included the European Union, Japan and South Korea, exporters of cars, electronics, pharmaceuticals and auto parts. Ahead of Friday’s ruling, tariffs on many of their goods stood at 15%. South Korea also faced a recent threat of a hike to 25%.
All of those IEEPA-based “Liberation Day” tariffs are now void.
TRAFFICKING TARIFFS ON CANADA, MEXICO AND CHINA
Trump imposed new tariffs on America’s three largest trading partners: Mexico, Canada and China.
Before the ruling, Canadian goods that didn’t comply with the 2020 United States-Mexico-Canada Agreement faced 35% tariffs, while similar Mexican imports were taxed at 25%. China faced a 10% fentanyl-related tariff, down from 20% earlier in the year.
China’s exports to the US include electronics, clothing and toys. Canada supplies crude oil and auto parts, while Mexico ships cars, produce and beverages.
These trafficking tariffs were also imposed under IEEPA and are now invalid.
BRAZIL AND THE BOLSONARO DISPUTE
Trump used the emergency law to impose additional tariffs on Brazil over its criminal prosecution of former President Jair Bolsonaro.
Brazil already faced the 10% baseline tariff from Liberation Day. The administration added another 40%, bringing total levies to 50% on many products before Friday’s ruling.
Despite the US running a trade surplus with Brazil, Trump cited political and policy concerns to justify the move.
Those additional Brazil-related tariffs were likewise struck down.
TARIFFS ON INDIA OVER RUSSIAN OIL
India was also hit with IEEPA-based tariffs. After Liberation Day, Trump imposed a 25% tariff on Indian goods, later adding another 25% over India’s purchases of Russian oil — pushing total duties to 50%.
Earlier this month, however, the US and India reached a trade framework deal. Trump said Prime Minister Narendra Modi agreed to halt Russian oil purchases and that tariffs would be lowered to 18%. India, for its part, pledged to reduce or eliminate tariffs on US industrial goods and certain agricultural products.
India’s key exports to the US include pharmaceuticals, textiles and precious stones.
Those IEEPA tariffs are now overturned.
WHAT TARIFFS STILL REMAIN?
Despite Friday’s decision, many US tariffs remain in place.
Trump has relied heavily on Section 232 of the 1962 Trade Expansion Act to impose national security tariffs on steel, aluminium, cars, copper and lumber. More recently, he expanded Section 232 duties to items such as kitchen cabinets, bathroom vanities and upholstered furniture.
These tariffs were not challenged in the Supreme Court case and remain active.
The President has also used Section 301 — a separate trade statute targeting unfair practices — to impose duties, notably on Chinese goods during his first term.
Amid rising price concerns, Trump has rolled back or exempted certain goods, including coffee, tropical fruit and beef.
And the trade fight isn’t over.
Following Friday’s ruling, Trump announced he would impose a new 10% global tariff under Section 122 of the Trade Act of 1974. Those tariffs can last up to 150 days unless extended by Congress.
The Supreme Court’s decision curtails one of Trump’s boldest legal strategies. But it does not end his tariff campaign — it simply forces him to pursue it under different laws.
With inputs from Associated Press
