The Supreme Court has ruled that most of Donald Trump’s tariffs are illegal

The US Supreme Court on Friday overturned most Tariffs imposed by President Donald TrumpWhich could lead to more than $175 billion in tariff refunds for US companies. In a 6-3 decision, the justices ruled that the International Emergency Economic Powers Act (IEEPA) — the law the Trump administration has used to justify many of its sweeping global tariffs — does not give the president the power to impose taxes, and tariffs are a form of tax on imports.

Since the beginning of his second term, Trump has issued a variety of tariffs targeting nearly every country in the world. Most of these definitions, incl So-called chaotic “mutual definitions”. Last April that sought to impose taxes Even islands inhabited only by penguinsis licensed under IEEPA in accordance with the Administration’s Executive Orders.

From the beginning, legal scholars have questioned whether the IEEPA was intended to cover definitions at all. In his opinion on eliminating the tariffs, Chief Justice John Roberts wrote: “It is also interesting that in the half-century of IEEPA’s existence, no president has resorted to the law to impose any tariffs, let alone tariffs of this size and scope.” Instead, he wrote, “the president must establish a clear congressional mandate to exercise.”

Friday’s decision represents a major and rare pushback from the Supreme Court against the Trump administration’s capricious policies. Justices Clarence Thomas, Samuel Alito, and Brett Kavanaugh dissented.

During a White House breakfast with state governors on Friday morning, Trump reportedly called the ruling a “disgrace” and said he had a backup plan. according to CNN correspondent Kaitlan Collins.

The Supreme Court ruling does not cover all the definitions announced in the past two years. For example, the steel, aluminum and copper sectors are not affected because they were imposed under different presidential powers.

“Small businesses are rightly concerned that the administration will respond to this legal defeat by simply reimposing the same tariff policy through other means,” Dan Anthony, executive director of the We Pay Tariffs Small Business Coalition, said in a statement. “Reimposing tariffs under different legal approaches would have the same devastating effect.”

It will not be easy for the administration to replace those definitions immediately, since other related policies often come with their own procedures and lengthy trade investigations before definitions can be required.

The ruling also launches the process of recovering a massive amount of customs duties already collected last year. Economists And it was appreciated More than $175 billion has been raised since February 2025 under IEEPA’s tariff policies. In January, anticipating the Supreme Court’s decision, Trump posted on Truth Social that the refund “would be a complete mess, and almost impossible for our country to pay.”

Several major companies, including Costco, Prada, BYD, and Goodyear, have filed lawsuits against the federal government seeking a refund of the tariffs. Cantor Fitzgerald, a financial services firm run by the sons of US Commerce Secretary Howard Lutnick, has also created ways for its clients to bet on the tariffs being eliminated, WIRED reported. Reported for the first time In July 2025.