A sweeping decision from the highest US court has halted President Donald Trump’s global tariff plan, ruling that the executive branch overstepped its legal authority in imposing the measures.
Delivering a split judgment, the Supreme Court of the United States found that Trump improperly relied on emergency powers to introduce country-wide import levies under the 1977 International Emergency Economic Powers Act.
Interpreting the statute, the justices held that the law was crafted to address real national crises and does not empower a president to unilaterally impose broad tariffs without congressional approval.
Marking a notable restraint on executive reach, the bench emphasised constitutional boundaries after months in which the administration had advanced contentious policies while litigation continued.
Writing for the majority, the court stressed that tariff-setting authority rests with Congress, concluding that the emergency law permits regulation of specific economic dealings but not blanket import taxation.
The ruling coalition included Ketanji Brown Jackson, Elena Kagan, Sonia Sotomayor, Amy Coney Barrett, Neil Gorsuch and Chief Justice John Roberts, while dissenting opinions came from Clarence Thomas, Samuel Alito and Brett Kavanaugh.
Applying directly to the so-called “Liberation Day” tariffs unveiled in April, the judgment voids levies ranging from 10 to 50 percent on imports from dozens of countries, which the administration had justified on national security grounds.
Extending its reach, the decision also covers earlier emergency-based tariffs targeting China, Mexico and Canada, introduced over concerns linked to migration and illicit trade.
Preserving other measures, however, the court clarified that industry-specific tariffs on steel, aluminium, lumber and automobiles enacted under a separate national security statute remain unaffected.
Responding immediately, financial markets posted gains, with the S&P 500, Nasdaq and Dow Jones Industrial Average all edging higher in early trading.
Defending his protectionist stance ahead of the verdict, Donald Trump had insisted tariffs were vital to strengthening domestic manufacturing and negotiating leverage, arguing that the economy would suffer without them.
