WASHINGTON: The U.S. Supreme Court ruled against the tariffs imposed by the Trump administration on a wide range of goods, particularly Chinese imports.
The court’s decision struck down the tariffs as unconstitutional, citing a violation of Congressional authority in trade matters.
The ruling has sent shockwaves through both political and economic spheres, marking a significant moment in the ongoing debate over executive power. The tariffs, which were introduced by President Donald Trump as part of his “America First” trade strategy, aimed to reduce the U.S. trade deficit, punish China for alleged intellectual property theft, and bring manufacturing jobs back to the U.S.
In a 6-3 decision, the court found that the executive branch, under the Trump administration, overstepped its constitutional boundaries by imposing tariffs without the explicit authorization of Congress.
The majority opinion, written by Justice Elena Kagan, argued that the Constitution grants Congress sole authority to regulate international trade, and that the President’s unilateral action undermined the system of checks and balances designed to prevent the centralization of power.
“The Constitution places responsibility for the regulation of commerce with Congress, not with the executive branch,” Justice Kagan wrote. “While the President has broad authority in matters of foreign policy, the imposition of tariffs falls squarely within the legislative domain.”
The ruling marks a significant setback for Trump’s trade agenda, which had garnered strong support among certain U.S. industries but also drew criticism from others. Businesses reliant on international supply chains, particularly in the technology and retail sectors, had long lobbied for the removal of the tariffs, arguing that they inflated costs and disrupted markets.
The decision immediately sparked reactions from both sides of the aisle. Democratic lawmakers hailed the ruling as a victory for the Constitution and a check on presidential power.
Reactions
A coalition of over 800 small businesses called “We Pay the Tariffs” applauded the Supreme Court ruling as a “tremendous victory” for small firms that have paid the cost of billions of dollars in tariffs.
It called on the Trump administration to deliver a “full, fast and automatic” refund process.
“A legal victory is meaningless without actual relief for the businesses that paid these tariffs. The administration’s only responsible course of action now is to establish a fast, efficient, and automatic refund process that returns tariff money to the businesses that paid it,” the group’s executive director Dan Anthony said.
“Small businesses cannot afford to wait months or years while bureaucratic delays play out, nor can they afford expensive litigation just to recover money that was unlawfully collected from them in the first place. These businesses need their money back now.”
