The global measures imposed by the country’s president were annulled by the Supreme Court, a development that deals a major blow to his economic policy and is his biggest legal defeat since his return to the White House.
The court ruled that Trump exceeded his authority by invoking a federal emergency powers law (IEEPA) to impose his “reciprocal” tariffs around the world, as well as targeted import taxes that the administration says are targeting fentanyl smuggling.
of a 1977 law, the International Emergency Economic Powers Act (IEEPA), which gives the president the power to “regulate” trade in an emergency.
Trump first invoked it in February 2025 to impose tariffs on goods from China, Mexico and Canada, arguing that drug trafficking from those countries constituted an emergency.
He used it again in April, imposing tariffs of 10% to 50% on goods from almost every country in the world. He said the US trade deficit – where US imports exceed exports – was an “extraordinary and unusual threat”.
The tariffs in question are canceled by Friday’s court decision.
Which Trump Tariffs Are Not Repealed
However, the tariffs imposed on certain manufacturing industries, such as steel, aluminum, lumber, and the auto industry, were put into effect under Section 232 of the Trade Expansion Act of 1962, also based on national security concerns, and are expected to continue in effect as usual.
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