A blow to the former president’s trade policy
The US Supreme Court, with an unusual majority that crossed ideological lines, has just slammed the door on one of Donald Trump’s most controversial commercial weapons. It invalidated those so-called “reciprocal” tariffs that it imposed on more than a hundred countries, from the EU to China and Mexico.
The reason is compelling: the former president abused the Emergency Powers Act (IEEPA) of 1977. The 170-page ruling says he used a tool for national emergencies as a hammer to hit global trade.
And now what? The bill could be huge
Here’s the kicker: this doesn’t affect other specific levies (like aluminum or cars), but it opens the door to historic refunds. Analysts speak of up to $175 billion that companies could claim. The ruling does not say how to return the money, but it sets the table for an epic legal battle.
“The IEEPA does not give the president authority to impose tariffs,” Chief Justice John Roberts stressed.
Roberts, joined by skeptical liberal and conservative justices, signed the majority opinion. It was a clear message: Congress has that power, not the White House. Three justices, including Clarence Thomas and Brett Kavanaugh, dissented, warning of economic damage.
The ruling comes at an explosive time: four days before Trump’s State of the Union address. It’s an uncomfortable reminder about the limits of executive power. Behind it are companies grouped in “We Pay the Tariffs”, which have been fighting for years against what they consider an illegal tax.
The question now is whether this ruling sets a precedent to stop future tariff adventures or if it is just another chapter in the permanent trade war.




