The Supreme Court of the United States of America (USA) canceled today the tariffs that President Donald Trump introduced to many countries of the world, in accordance with the law intended for emergency situations at the national level, under the explanation that he exceeded his presidential powers.
The court ruled by six votes to three that the Trump administration’s interpretation that the disputed International Emergency Economic Authorization Act (IEEPA) encroaches on the powers of Congress and violates the legal principle of the “important issue doctrine”.
That doctrine requires that executive branch actions of “overwhelming economic and political significance” must be clearly authorized by Congress.
Chief Justice John Roberts stated that Trump “must point to the clear authority of Congress” to justify his claims that he is authorized to impose tariffs. ;
“That can’t be done,” said the judge.
The tariffs that Trump gradually introduced and the amounts of which he repeatedly changed were an important economic and foreign policy tool for him, and they significantly alienated some of Washington’s trading partners, influenced the financial markets and caused great economic uncertainty around the world.
The Supreme Court ruled in a legal dispute brought by companies affected by the tariffs and 12 US states.
It was predicted that Trump’s tariffs will bring billions of dollars to the American economy, which is already the largest in the world, over the next ten years.
The US Constitution gives Congress, not the president, the power to impose taxes and tariffs. Trump instead invoked a special IEEPA law to impose measures on nearly every US trading partner without the House’s approval.
The IEEPA allows the president to regulate trade in emergency situations at the national level, and Trump has become the first president to do so in favor of imposing tariffs, thereby pushing the limits of executive power.
Trump has previously repeatedly stated that the tariffs he is introducing are key to the economic security of the US, predicting that the country could be “helpless and destroyed without them”.
In November, Trump told reporters that without his tariffs, “the rest of the world would be laughing at the US because they used tariffs against us and abused us for years.”
Treasury Secretary Scott Besant and other administration officials have said Washington will invoke other legal justifications to keep as many of Trump’s tariffs as possible.
Trump’s ability to instantly impose tariffs on any trading partner’s goods, under the auspices of a national emergency, has increased his influence over other countries and led to numerous world leaders coming to Washington to secure trade deals, which often included promises of billions of dollars in investment or other offers of improved market access for American companies.
Historically, IEEPA has been used to impose sanctions on enemies or freeze their assets, not to impose tariffs, as he does not even mention that measure specifically.
The US Department of Justice argued that the IEEPA authorizes the tariffs by authorizing the president to “regulate” imports to address emergency situations.
Total net revenue from tariffs in the US reached $195 billion in fiscal year 2025, which ended on September 30, according to data from the US Treasury Department.
About a year ago, Trump called on IEEPA to introduce tariffs on China, Canada and Mexico, citing the emergency situation of the trade in fentanyl and other types of narcotics.
