In a landmark 6-3 ruling on Friday, the US Supreme Court declared that former President Donald Trump overstepped his executive authority by invoking emergency powers to impose sweeping global tariffs. Chief Justice John Roberts, writing for the majority, asserted that the 1977 International Emergency Economic Powers Act (IEEPA) contains no provision granting unilateral tariff-imposing power to the president.
The decision in Learning Resources, Inc. v. Trump represents a severe judicial blow to Trump’s signature trade policy, which triggered international trade conflicts and imposed substantial financial burdens on American consumers and businesses. The ruling specifically invalidates two major tariff categories: country-specific ‘reciprocal’ tariffs (ranging from 34% on China to 10% baseline rates) and a 25% levy on certain goods from Canada, China, and Mexico related to fentanyl policy disputes.
According to congressional Democratic analysis released following the verdict, the average American family has absorbed over $1,700 in additional costs since the implementation of these tariffs during Trump’s second term. The policy also failed to achieve its stated economic objectives, with manufacturing jobs declining by approximately 108,000 in the first year of implementation and no measurable improvement in the US trade deficit.
While businesses may pursue tariff refunds through lengthy administrative processes, consumers face minimal prospects for recovering their increased expenses. Policy experts warn that economic repercussions will persist for years, with Groundwork Collaborative’s Alex Jacquez noting that ‘any consumer looking for relief from tariff-driven price hikes did not find it at the Supreme Court today.’
The ruling has prompted immediate evaluation of alternative legal mechanisms within the Trump administration, including Section 122 of the Trade Act of 1974, which provides broader tariff authority with fewer procedural constraints. Congressional Democrats have expressed concern that the decision may merely redirect rather than eliminate Trump’s tariff ambitions, with Representative Brendan Boyle warning of continued ‘unhinged economic sabotage’ through alternative statutory pathways.