SCOTUS Strikes Down Tariffs; Trump Orders New 10% Levy

WASHINGTON, United States

A major legal and economic showdown unfolded after the Supreme Court of the United States struck down sweeping tariffs imposed under emergency powers, prompting Donald Trump to quickly order a new 10 percent levy under a different law, setting the stage for fresh political and legal battles over trade authority.

In a 6–3 decision in the case of Learning Resources, Inc. v. Trump, the court ruled that the president exceeded his authority by using the International Emergency Economic Powers Act to impose broad tariffs on imports. The majority held that the statute, historically used for sanctions during national emergencies, does not grant the executive branch unlimited power to set import taxes across the global economy.

Chief Justice John Roberts, writing for the majority, said interpreting the law to allow sweeping tariffs would stretch congressional intent too far and undermine the constitutional balance of powers, which assigns primary authority over tariffs to Congress. The ruling effectively invalidates a cornerstone of Trump’s recent trade policy and marks one of the most significant judicial checks on presidential economic power in decades.

The tariffs in question trace back to April 2025, when the administration announced a baseline 10 percent duty on most imports  often referred to as “Liberation Day” tariffs  along with higher rates on certain countries. The White House argued the measures were necessary to reduce trade deficits, boost domestic manufacturing, and protect national security. Critics, including many businesses and economists, warned the tariffs raised costs for consumers and disrupted supply chains.

Legal challenges quickly followed, with companies and states arguing the administration had bypassed Congress. Lower courts, including the U.S. Court of International Trade, ruled against the policy before the dispute reached the nation’s highest court.

Within hours of the Supreme Court decision, Trump announced plans to impose a new global tariff using Section 122 of the Trade Act of 1974, a different legal pathway that allows temporary tariffs to address balance-of-payments issues. The president said the move would ensure continued protection for American industries while the administration reviews longer-term options.

Economists say the ruling could have wide-ranging consequences, including potential refunds of previously collected tariff revenues that may total tens of billions of dollars. Markets are also watching closely for signs of renewed trade tensions with key partners, as well as possible retaliatory measures.

Legal scholars note the decision reinforces the principle that while Congress can delegate certain trade powers, those delegations must be clearly defined. The case is expected to shape how future administrations use emergency powers in economic policy and may encourage lawmakers to revisit the scope of presidential trade authority.

For businesses and consumers, uncertainty remains as the administration moves forward with the new tariff plan, which could face its own legal challenges. Meanwhile, policymakers in Washington and around the world are closely monitoring the situation, aware that the outcome could redefine the boundaries of executive power in global trade for years to come.

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