The U.S. Supreme Court has raised serious doubts about the legality of the tariffs imposed worldwide by former President Donald Trump. The case is seen as a critical test that will determine the limits of Trump’s presidential powers.
Both conservative and liberal judges questioned whether the International Emergency Economic Powers Act (IEEPA) of 1977 authorized Trump to impose such broad tariffs without congressional approval.
Chief Justice John Roberts stated that tariffs are “a tax imposed on Americans,” emphasizing that this is “a fundamental power of Congress.”The Trump administration cited the IEEPA as grounds for declaring the country’s trade deficit an “economic and national security threat.” However, the court argued that the law was intended for trade regulation in emergency situations, not for the power to impose taxes.
Liberal Judge Ketanji Brown Jackson said the IEEPA was enacted “to limit, not expand, the president’s powers.” In response, Judge Brett Kavanaugh signaled his support for Trump by citing the example of Richard Nixon’s implementation of a similar global tax in the 1970s. The Trump administration announced it would seek new legal grounds to counter any potential negative court decision. Treasury Secretary Scott Bessent expressed optimism after the ruling. The outcome of this case has the potential to impact not only the US economy but also the global trade balance. If the court rules against Trump, it will both redefine the limits of presidential powers and mark a significant turning point in Washington’s foreign trade policy.
