The US Supreme Court (SC) on Friday, struck down the tariffs imposed by the Trump administration by 6-3 decision. In the verdict, the court held that the tariffs went beyond the scope of law. This judgement is expected to offer a major relief to many countries. Trump first invoked tariffs in February 2025 on China, Mexico and Canada, citing drug trafficking as the major issue for imposing tariffs on these countries. India was also affected by the tariffs imposed by Trump in August 2025. Recently, a deal was finalised between India and the US, which lowered the tariffs on India from 50% to 18%. The sweeping tariffs Trump imposed worldwide will be affected by this decision.
Various industry groups and Democrats hailed the decision of SC. The US Constitution grants the Congress and not the President to impose tariffs and taxes. But Trump used IEEPA (International Emergency Economic Powers Act) to impose tariffs on nearly every US trading partner without the approval of Congress. With this, Trump became the first President to use IEEPA to impose tariffs. The IEEPA lets a president regulate commerce in a national emergency. Historically, IEEPA had been used for imposing sanctions on enemies or freezing their assets, not to impose tariffs.
Trump described the tariffs as vital for US economy, stating that the country would be ruined without them. He also said that, US was abused by countries such as China. The majority did not address whether the companies would get refunded for billions they have collectively paid in tariffs. Earlier in a November statement, Trump said he would go for alternative if the SC ruled against him on tariffs. On the current judgement, Trump said, ‘I have a backup plan’, calling the ruling ‘disgrace’.
