The US Supreme Court ruled on Friday that President Donald Trump’s wide-reaching global tariffs were not allowed under the emergency law he used.
The judges said the US Constitution gives Congress, not the President, the main power to set taxes on imports, including tariffs. Soon after the decision, Trump said he would try a different plan: a new 10% tariff on goods from countries around the world, using a different law that would limit the tariffs to 150 days.
Trump criticised the Court’s decision and said he believed it was wrong, but claimed he had other ways to keep his trade policies moving. The case focused on “reciprocal” tariffs that affected nearly every other country. Chief Justice John Roberts wrote that the country’s founders did not give the President the power to control taxation by himself. Three justices disagreed and said the tariffs were lawful under the emergency law.
The ruling did not answer a big question: whether companies can get refunds for tariffs they have already paid. Some businesses, including major retailers, have said they will ask lower courts for their money back, which could be complicated. Government data showed the Treasury had collected more than US$133 billion from tariffs under that emergency law as of December.
Even with this loss, the decision does not stop Trump from using other US laws to place tariffs, although those rules can be slower or stricter. Leaders in Europe said they were seeking clarity on what the US would do next and would keep pushing for lower tariffs.
