With a 6-3 majority, the Supreme Court ruled Trump exceeded his authority when he imposed tariffs via a law reserved for national emergencies – they say he needs congressional approval to impose taxes on imports
The court’s decision represents a rare check on this president’s broad use of executive authority – read our North America correspondent’s snap analysis
The ruling applies to Trump’s so-called “Liberation Day” tariffs, but not individual tariffs he’s imposed on specific countries or products
He has long argued tariffs boost American manufacturing – but many in the business community, as well as Trump’s political adversaries, say the costs are passed on to consumers
What are tariffs? They’re taxes on imported goods, which are usually charged as a percentage of a good’s value. They’re paid to the government by companies bringing in the foreign products. Donald Trump had been warning for months that a Supreme Court decision like this would be catastrophic.
If the court curtailed his ability to impose these tariffs, he had said, it would be an “economic and national security disaster”.
A six-justice majority of the Supreme Court, in ruling against the president on Friday, didn’t care much about his concerns.
Congress, not the president, has the power to impose tariffs, the justices ruled. And nothing in the law that the president based his tariffs on, the Emergency Economic Powers Act of 1977, delegated such sweeping powers to Trump.
The court’s decision represents a rare check on this president’s broad use of executive authority.
A majority of the justices over the past year have shown a willingness to allow Trump to press ahead with his agenda, particularly on immigration and reshaping the federal government, even as legal challenges work their way through the court system.This case, which was fast-tracked through the court system as an emergency, slams the door on one such expansive use of presidential authority.
With several other major cases involving controversial uses of executive power, such as efforts to end birthright citizenship and to dismiss a Federal Reserve governor based on alleged improprieties, this may not be Trump’s only setback in the coming months.
At the very least, this decision weakens Trump’s hand when trying to force other nations to make concessions to the US and tarnishes his veneer of invincibility.
Weakness begets weakness, and America’s trading partners may be emboldened to take a tougher line with the US now that the president’s tariff powers have been curtailed.
It also opens up the possibility that the Trump administration may have to give back much of the tariff revenue it collected over the past year.
While the justices left this thorny issue to be decided by a lower court, Brett Kavanaugh in his dissent warned that the process is likely to be a “mess”.
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