The U.S. Supreme Court has ruled that former President Donald Trump exceeded his authority by imposing global tariffs under the International Emergency Economic Powers Act. The 6-3 decision nullifies key tariffs and opens the door for businesses to seek refunds, a move that triggered a positive reaction in traditional financial markets. The cryptocurrency market, however, showed no immediate sign of recovery following the news.
The Supreme Court ruled former President Donald Trump exceeded his legal authority by imposing global tariffs under a 1977 national emergency law. In a 6-3 decision, the court found the International Emergency Economic Powers Act does not grant the president power to impose tariffs of unlimited scope.
Chief Justice John Roberts wrote the majority opinion, joined by three liberal justices and conservative Justices Neil Gorsuch and Amy Coney Barrett. The ruling cancels major tariff categories, including country-by-country “reciprocal” tariffs and a 25% tax on some goods from Canada, China, and Mexico.
Justices Clarence Thomas, Brett Kavanaugh, and Samuel Alito dissented. Kavanaugh warned the decision “could have financial consequences for the U.S. Treasury, especially if businesses demand refunds for tariffs they already paid.” Trump criticized the ruling as a “disgrace” and called the decisions by his nominees Gorsuch and Barrett “terrible and embarrassing.”
Financial markets reacted positively, with stocks rising after the announcement. Business owners who challenged the tariffs welcomed the outcome. Victor Schwartz, head of wine importer VOS Selections, said the courts recognized the tariffs as unconstitutional government overreach.
The decision marks a major legal setback for Trump. Tariffs on steel and aluminum imposed under different laws remain in place. The cryptocurrency market, particularly Bitcoin, showed no positive sign of recovery at the time of reporting.
