by Food Trade News Team
The U.S. Supreme Court struck down the sweeping global tariffs imposed by President Donald Trump, ruling that he exceeded his legal authority under a 1977 statute.
A 6–3 decision issued Friday, The Court majority held that the International Emergency Economic Powers Act (IEEPA) – the law Trump’s administration cited to justify broad import tariffs – does not authorize a President to impose tariffs, which are a form of taxation that the Constitution assigns exclusively to Congress.
Chief Justice John Roberts, writing for the majority, said Congress alone holds the power to levy taxes and duties and that emergency powers statutes cannot be interpreted to give the Executive unbounded tariff authority.
Justices Clarence Thomas, Samuel Alito, and Brett Kavanaugh dissented, arguing that historical practice and statutory language should permit broader executive authority in trade matters.
The ruling invalidates most of the tariffs imposed under IEEPA, potentially affecting more than $130 billion of duties collected and opening the door to refund claims by importers. Legal and business groups welcomed the decision as a reaffirmation of separation of powers and a source of certainty for international commerce.Â
There have been many previous lawsuits related to tariffs, amongst them the question about whether the tariffs should be refunded and to whom is paramount. The unwinding of tariffs already paid – many paid by consumers through pass through pricing – looks to be a major legal and logistical hurdle.Â
The Trump administration signaled it may pursue alternative statutory routes to impose trade measures, though such mechanisms are more limited. The ruling represents a significant legal check on executive power in trade policy and marks a rare rebuke of a signature economic initiative from the Trump presidency.
This ruling will not have an immediate impact on consumer prices or grocery retailers as much of the costs have already been ‘baked in’ to the costs over the past few quarters. Â
