Editor’s Note
The U.S. Supreme Court has ruled that tariffs imposed by the Trump administration under emergency powers were illegal, marking a significant legal setback.
The US Supreme Court has delivered the biggest blow yet to President Donald Trump. The court has declared illegal the tariffs that the Trump administration had imposed by invoking emergency powers.
The US Supreme Court has dealt a major blow to President Donald Trump. The court has ruled the policy under which he imposed sweeping tariffs on several countries using emergency powers as unconstitutional. The court clearly stated that the International Emergency Economic Powers Act (IEEPA) does not authorize the President to impose tariffs in this manner.
The Chief Justice of the US Supreme Court made this clear during the hearing. This comment weakened the Trump administration’s argument, in which they tried to justify imposing tariffs by labeling the trade deficit and drug crisis as a national emergency.
The Trump administration may have to refund over $100 billion. This decision not only raises questions about Trump’s executive powers but is also set to place a heavy burden on the US Treasury. The world’s eyes are now on how this refund process will be completed.
The US Supreme Court, in a 6-3 decision, upheld the lower court’s ruling. The lower court had previously declared the tariffs imposed by Trump illegal, and now the Supreme Court has also affirmed that view. Thus, the court made it clear that using the President’s emergency powers to impose duties on trade partners is outside the scope of the law.
The world’s eyes were on this court decision because billions of dollars were at stake. On Friday, the US Supreme Court made it clear that the tariffs collected by the Trump administration were not legally valid. Following this historic decision, the government will now have to return over $100 billion (approximately 100 billion US dollars). This is a major relief for companies and businesses that have been paying these duties for a long time.
The court’s stance is seen as a major obstacle for Trump. Typically, this court has supported the President’s executive powers, but this time the case was different. Trump had imposed these duties by citing the 48-year-old ‘International Emergency Economic Powers Act’ (IEEPA). He had argued that the trade deficit and drug crisis constituted conditions akin to a national emergency. However, critics say these problems are decades old and cannot be suddenly considered an emergency.
After this judicial blow, Trump does have other legal options for tax collection, but they are quite complicated. Duties can be imposed under Sections 122, 232, 301, and 338 of the tax code, but their processes are very slow. Trump himself admitted in December that other methods are too slow and cumbersome. According to him, other laws do not provide the same strength and national security power that he was getting from IEEPA.
Experts believe this decision could cause upheaval in the business world. According to analyst Traz, this refund process will be like opening a ‘Pandora’s Box,’ creating massive uncertainty in an election year. Issuing refunds is no easy task. It will involve the Customs Department, multiple courts, and political complexities. Ultimately, resolving this problem on a large scale may require intervention from Parliament (Congress).