The US Supreme Court ruled, on Friday, February 20, that Donald Trump had exceeded his authority in imposing a swath of tariffs that upended global trade, blocking a key tool that the president has wielded to impose his economic agenda. The conservative-majority high court ruled six-three in the judgment, saying the International Emergency Economic Powers Act (IEEPA) “does not authorize the President to impose tariffs.”

While Trump has long used tariffs as a lever for pressure and negotiations, he made unprecedented use of emergency economic powers upon returning to the presidency last year to slap new duties on virtually all US trading partners. These included “reciprocal” tariffs over trade practices that Washington deemed unfair, alongside separate sets of duties targeting major partners Mexico, Canada and China over illicit drug flows and immigration.

A ‘mess’ to come

The Supreme Court’s three liberal justices joined three conservatives in Friday’s ruling, with Conservative Justices Brett Kavanaugh, Clarence Thomas and Samuel Alito dissenting. Chief Justice John Roberts, in delivering his opinion, noted that the “IEEPA contains no reference to tariffs or duties.”

The court noted that “had Congress intended to convey the distinct and extraordinary power to impose tariffs” with the IEEPA, “it would have done so expressly, as it consistently has in other tariff statutes.”

The justices did not address the degree to which importers can receive refunds. But Kavanaugh warned that this process – as acknowledged during oral arguments – could be a “mess.”

Sector-specific tariffs untouched

The ruling does not impact the sector-specific duties that Trump has separately imposed on imports of steel, aluminum and various other goods. Some formal probes, which could ultimately lead to more such sectoral tariffs, are still in the works.

The Supreme Court’s decision upheld earlier findings by lower courts that the tariffs Trump had imposed under the IEEPA were illegal. A lower trade court had ruled in May that Trump overstepped his authority with across-the-board levies and blocked most of them from taking effect, but that outcome had been put on hold as the government sought an appeal.