The Supreme Court of the United States, in a 6–3 decision, struck down President Donald Trump’s tariffs imposed under the International Emergency Economic Powers Act (IEEPA).
Liberal justices Ketanji Brown Jackson, Elena Kagan and Sonia Sotomayor joined conservative justices Amy Coney Barrett, Neil Gorsuch and Chief Justice John Roberts in voting to strike down the tariffs.
“The Government reads IEEPA to give the President power to unilaterally impose unbounded tariffs and change them at will,” Roberts wrote. “That view would represent a transformative expansion of the President’s authority over tariff policy.”
Roberts noted that in IEEPA’s “half century of existence, no President has invoked the statute to impose any tariffs, let alone tariffs of this magnitude and scope.”
He added that the lack of historical precedent, “coupled with the breadth of authority that the President now claims, suggests that the tariffs extend beyond” Trump’s authority.
Justices Samuel Alito, Clarence Thomas and Brett Kavanaugh dissented.
“The tariffs at issue here may or may not be wise policy. But as a matter of text, history, and precedent, they are clearly lawful,” Justice Kavanaugh wrote in his dissent.
Justice Clarence Thomas, in his dissent, wrote that “neither statutory text nor the Constitution provide a basis for ruling against the President.”
He added, “The Court has long conveyed to Congress that it may vest the president with large discretion in matters arising out of the execution of statutes relating to trade and commerce with other nations.”
Will companies get tariff refund?
The Supreme Court did not address whether companies can recover the billions already paid in tariffs.
Many companies, including the retailer Costco, have filed for refunds in lower courts.
Justice Kavanaugh noted in his dissent that the process of returning the collected tariffs could be complicated and “a mess.”
“The Court says nothing today about whether, and if so how, the government should go about returning the billions of dollars that it has collected from importers. But that process is likely to be a ‘mess,’ as was acknowledged at oral argument,” he wrote.
National Retail Federation reacts
The National Retail Federation (NRF) said the ruling “regarding tariffs provides much-needed certainty for U.S. businesses.”
“Clear and consistent trade policy is essential for economic growth, creating jobs and opportunities for American families,” the NRF said, adding: “We urge the lower court to ensure a seamless process to refund the tariffs to U.S. importers.”
“The refunds will serve as an economic boost and allow companies to reinvest in their operations, their employees and their customers.”
NRF is one of the top trade groups for retailers and manufacturers.
