U.S. Supreme Court finds Trump overstepped authority in imposing tariffs under emergency law

The U.S. Supreme Court rules against Trump

In a decision delivered Friday, U.S. Supreme Court justices said President Donald Trump overstepped his authority when he used emergency powers to impose tariffs on nearly every one of the country’s trading partners last year. 

The decision invalidates the legal basis Trump has used to impose sweeping tariffs for the better part of a year, which means the U.S. Treasury might be forced to refund importers billions of dollars in earnings. 

The ruling also means the president must abandon the central tool he’s used to pursue his economic and foreign policy strategy since returning to office for his second term.

The ruling is a victory for international trading partners like Canada, Mexico and China, who have all been subject to levies under the 1977 International Emergency Economic Powers Act (IEEPA).