The U.S. Supreme Court on Friday struck down President Donald Trump’s sweeping tariffs in a 6-3 decision by Chief Justice John Roberts. The court upheld a lower court’s ruling that the Republican president had used the 1977 law beyond his authority.
The majority found that the Constitution “very clearly” gives Congress the power to impose taxes, including tariffs. “The Framers did not vest any part of the taxing power in the executive branch,” Chief Justice John Roberts wrote, according to a Reuters report.
You can follow all the latest updates from the Supreme Court ruling on Trump’s tariffs here
Chief Justice John Roberts delivered the court’s opinion. Justices Clarence Thomas, Samuel Alito and Brett Kavanaugh dissented.
What did the US Supreme Court say?
According to a report by The Washington Post, the U.S. Supreme Court ruled that the U.S. president did not have the authority under the International Emergency Economic Powers Act (IEEPA) of 1977 to impose sweeping import tariffs on goods from nearly all U.S. trading partners.
Trump has imposed blanket tariffs on almost all of America’s trading partners – citing the International Emergency Economic Powers Act (IEEPA).
The IEEPA is a 1977 law that allows the US president to regulate economic transactions during a declared national emergency.
The Trump administration has previously argued that persistent trade deficits, unfair trade practices and supply chain vulnerabilities constitute an economic emergency.
A $175 billion refund?
Donald Trump’s administration has not released data on the collection of tariffs since December 14.
But economists at the Penn Wharton Budget Model estimated Friday that the tariffs imposed under the IEEPA have generated more than $175 billion in revenue. And that amount will likely have to be returned with the Supreme Court ruling against IEEPA-based tariffs, Reuters reported.
Trump previously wrote on Truth Social that repaying the money would be “an absolute mess” and “nearly impossible for our country to pay.” He said the compensation could reach “many hundreds of billions of dollars” – estimated at more than $130 billion, according to a BBC report published in January 2026.
“Uncertainty about trade deals…”
Kavanaugh, who Trump appointed during his first term as president, said in a written dissent that the text of the IEEPA, as well as history and previous Supreme Court decisions, support the Trump administration’s position.
He also argued that the US Supreme Court’s overturning of Trump’s tariff regime could create uncertainty over various trade deals.
“Given that the IEEPA tariffs have helped facilitate trillions of dollars in trade deals — including with foreign countries from China to the United Kingdom to Japan, the court’s decision could create uncertainty about various trade deals,” Kavanaugh wrote, according to Reuters.