The U.S. Supreme Court ruled Friday that President Donald Trump’s sweeping emergency tariffs are illegal and can’t stay in place without Congress’s approval.
In a 6-3 decision, the justices said Trump went too far by using an old emergency powers law to slap big taxes on imports from many countries. The court said that only Congress has the power to impose tariffs, and the law Trump used doesn’t give the president the right to do it.
Chief Justice John Roberts wrote that the president “must identify clear congressional authorization” to impose wide tariffs, and no law gives the president that kind of power.
The ruling undercuts one of Trump’s major economic policies from his second term, in which he imposed tariffs on everything from Chinese goods to imports from allies as part of his trade strategy.
The decision could have big consequences. Companies and importers may now seek refunds for tariffs they have already paid, and lawmakers will likely debate how to handle trade policy going forward.
Retail groups quickly welcomed the ruling.
“The Supreme Court’s announcement today regarding tariffs provides much-needed certainty for U.S. businesses and manufacturers, enabling global supply chains to operate without ambiguity. Clear and consistent trade policy is essential for economic growth, creating jobs and opportunities for American families. 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,” said David French, Executive Vice President of Government Relations at the National Retail Federation.
Legal groups that challenged the tariffs also praised the decision.
“The Supreme Court has made clear that grants of authority begin and end with Congress’s words. By enforcing that textual limit, the decision maintains the proper separation of powers,” said Andrew Morris, Senior Litigation Counsel at the New Civil Liberties Alliance.
Trump allies argued the tariffs were needed to protect U.S. industries and pressure trading partners, but the court said that kind of decision belongs to Congress, not the president.
This ruling is seen as a major check on presidential power in trade policy and reinforces the idea that major economic changes require clear approval from lawmakers.
What happens next for companies
The ruling may not bring immediate clarity for companies trying to make sourcing decisions.
“Following the Supreme Court ruling against country-based tariffs, the administration may impose additional commodity-based tariffs. This could trigger another round of exemption requests and international trade negotiations, potentially prolonging the tariff rate uncertainty and resulting sourcing paralysis well into 2026,” said Andrei Quinn-Barabanov, Moody’s Supply Chain Industry Practice Lead.
He added that when companies cannot predict tariff exposure across suppliers, it becomes harder to lock in long-term contracts.
“Making prudent, long-term sourcing decisions becomes difficult when you can only make solid assumptions about tariffs for some potential vendors, but not for others,” he said.
