The Supreme Court, on Friday, dealt a huge blow to President Donald Trump's aggressive economic policies as it struck down the global tariffs, saying Trump exceeded his authority when he imposed the sweeping tariffs on every US trading partner.
The 6-3 decision centres on tariffs imposed under an emergency powers law, including the sweeping "reciprocal" tariffs he levied, and is expected to have significant implications for the US economy and consumers.
The majority found that the Constitution "very clearly" gives Congress the power to impose taxes, which include tariffs. "The Framers did not vest any part of the taxing power in the Executive Branch," Chief Justice John Roberts wrote.
“The president asserts the extraordinary power to unilaterally impose tariffs of unlimited amount, duration, and scope,” Roberts wrote further, adding, “In light of the breadth, history, and constitutional context of that asserted authority, he must identify clear congressional authorisation to exercise it.”
According to the court, the emergency authority Trump attempted to rely on “falls short.”
Joining Roberts in the majority were conservative Justices Neil Gorsuch and Amy Coney Barrett, both of whom Trump appointed during his first term in office, along with the three liberal justices.
Justices Samuel Alito, Clarence Thomas and Brett Kavanaugh dissented.
"The tariffs at issue here may or may not be wise policy. But as a matter of text, history, and precedent, they are clearly lawful," Kavanaugh wrote in the dissent.
In the wake of the SC ruling, an EU spokesperson said, "We take note of the ruling by the US Supreme Court and are analysing it carefully. We remain in close contact with the US Administration as we seek clarity on the steps they intend to take in response to this ruling," reported Reuters.