US Supreme Court strikes down Trump's tariffs, calls them "illegal"

The US Supreme Court delivered a massive blow to President Donald Trump’s economic agenda on Friday by striking down his sweeping tariffs imposed under national emergency laws. In a significant 6-3 ruling, the court found that the President exceeded his legal authority by using the International Emergency Economic Powers Act (IEEPA) to levy broad import taxes without explicit permission from Congress. Chief Justice John Roberts clarified that while the law allows for regulating commerce during emergencies, it does not grant the President an "unlimited" power to tax imports.

This decision effectively dismantles a central pillar of Trump’s second-term strategy, which relied heavily on tariffs to reduce trade deficits and pressure international partners like China. Throughout his campaign and return to office, Trump argued that these measures were essential for national economic security, claiming that without them, the United States would be "defenceless" against unfair global trade practices. However, the court's conservative majority sided with the constitutional principle that the power to impose taxes and tariffs rests primarily with Congress.

The legal challenge was spearheaded by a coalition of small businesses and 12 Democratic-governed states who argued that the tariffs fueled market volatility and diplomatic strain. While the administration defended the move as a necessary tool for leverage, the ruling now forces the White House to seek congressional approval for such broad economic measures. This shift is expected to have immediate and riveting implications for global markets and ongoing trade negotiations.