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The Supreme Court on Friday struck down most of the “emergency” tariffs President Donald Trump has imposed around the world in a remarkable 6-3 decision, upholding a key separation of powers.
The ruling held that the International Emergency Economic Powers Act (IEEPA) did not authorize the president to impose tariffs and remanded the case for review with instructions that the case be dismissed for lack of jurisdiction.
POLITICS: Supreme Court skeptical of Trump’s tariff powers
“Based on two words in IEEPA section 1702(a)(1)(B) – ‘regulate’ and ‘import’ – separated by 16 other words, the President asserts independent authority to impose tariffs on imports from any country, on any product, at any price, and for any period of time. These words cannot bear such weight,” Chief Justice John Roberts wrote in the majority opinion.
The justices took a circuitous path to the majority, with Justices Sonia Sotomayor, Elena Kagan, Neil Gorsuch, Amy Coney Barrett and Ketanji Brown Jackson concurring in part or in full. Justices Clarence Thomas, Brett Kavanaugh and Samuel Alito dissented.
During oral arguments on November 5, the justices made their position clear skepticism When they grilled Deputy Attorney General John Sauer over Trump’s invocation of the 1977 act IEEPA would impose uniform tariffs on trading partners around the world without congressional scrutiny.
With the high court’s ruling, the Trump administration could face a costly prospect it has been trying to avoid since this summer: refunds.
POLITICO: Think the high court will spare you from Trump’s 12-figure import tax? Think again.
United States Court of Appeals rule In August, most of Trump’sreciprocalThe tariffs are illegal but the option has been to suspend the initiation of any refund proceedings until the Supreme Court intervenes.
The issue of refunds is on Friday’s agenda for small business owners who are suing the government. victory. “The interim impact of the Court’s decision could be substantial,” Kavanaugh wrote in his dissent. “The United States may be required to refund billions of dollars to importers who paid IEEPA tariffs, although some importers may have passed on the costs to consumers or others. As acknowledged during oral argument, the refund process could be a ‘mess.'”
The path forward is unclear: Trump could rely on other regulations to impose tariffs, but they are subject to regulatory oversight by Congress and involve proving discrimination against U.S. trade by foreign partners, among other things.
This is a development story. Please check back for updates.
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