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Supreme Court Rejects Trump's Tariff Power Grab

Yahoo Finance •
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The Supreme Court delivered a major blow to Donald Trump's economic agenda, striking down his sweeping tariffs in a 6-3 ruling. Chief Justice John Roberts' opinion declared that Trump's use of the International Emergency Economic Powers Act to impose tariffs far exceeded what federal law allows, wiping out what the president had positioned as a cornerstone of his second term.

Roberts' majority opinion sent a clear message that the court would not rubber-stamp Trump's expansions of executive power, despite the Republican-appointed supermajority. The chief justice emphasized that the Constitution assigns primary authority over tariffs to Congress, not the president, noting that the Framers gave Congress alone "access to the pockets of the people" when it comes to taxation. The ruling found that IEEPA's grant of authority to "regulate" foreign imports contains none of the procedural limitations that Congress typically imposes when delegating tariff authority.

The decision exposed deep divisions within the conservative bloc. While Roberts, Gorsuch, and Barrett invoked the "major questions doctrine" to bolster their conclusion, Justices Kagan, Sotomayor, and Jackson argued the case could be decided through ordinary statutory interpretation. The dissenting opinions from Thomas and Kavanaugh appeared to many legal observers as attempts to accommodate Trump's power grabs, with Thomas even suggesting tariffs fall outside the core legislative power. The ruling represents a significant check on presidential authority over trade policy.