The U.S. Supreme Court struck down sweeping tariffs imposed by Donald Trump under a law designed to be used during national emergencies, handing the Republican leader a significant legal setback, Reuters reported.
In a landmark opinion issued Friday, the justices, in a 6-3 decision authored by conservative Chief Justice John Roberts, upheld a lower court’s ruling that Trump exceeded his authority in applying the 1977 sweeping tariffs law.
The court ruled that the law in question – the International Emergency Economic Powers Act (IEEPA) – did not give the president the power he claimed to impose broad tariffs on multiple US trading partners.
Several countries reacted quickly to the developments following the court’s ruling on US tariffs, with governments closely monitoring the implications for global trade flows and diplomatic ties.
Here’s how countries reacted to the news
— Canada: In response to the ruling, the country said the SC decision confirmed that Trump’s tariffs were “unwarranted”. Canada faces 35% tariffs on certain goods, although most are exempt under the existing US-Canada-Mexico Free Trade Agreement (USMCA). It is also affected by a 50% tax on imported metals and a 25% tariff on non-US cars.
— United Kingdom: A British government spokesman said it “will work with” the US on the impact of the tariff decision, according to AFP. The basic duty Britain faced under reciprocal tariffs was 10%, which it said was one of the lowest in the world. “Under any scenario, we expect our privileged trading position with the US to continue,” the spokesman said.
— European Union: According to an official EU spokesman, it is carefully “analyzing” the US Supreme Court’s customs decision, AFP reported. The US and EU reached an agreement on trade tariffs last year, imposing a 15% tariff on most exports to the US.
— Switzerland: The Swiss government said the country’s Federal Council recognizes the US Supreme Court decision, although it declined to provide any further comment. In January, President Trump agreed to cut a 39% tariff on Swiss imports to 15%, but warned that the rate could rise again.
What does the ruling mean for industry-specific tariffs?
The decision does not affect industry-specific tariffs that Trump has separately imposed on imports such as steel, aluminum and other targeted goods under different legal authorities.
Several ongoing government investigations could also pave the way for more sectoral tariffs, meaning trade tensions in specific sectors could continue despite the court’s broader ruling.
A lower commercial court had previously ruled in May last year that Trump had exceeded his authority with the blanket levies and blocked most of them, but that outcome was delayed as the government appealed, AFP reported.