WASHINGTON, Feb 20:
The Supreme Court struck down President Donald Trump’s far-reaching global tariffs today, handing him a significant loss on an issue crucial to his economic agenda.
The 6-3 decision centres on tariffs imposed under an emergency powers law, including the sweeping “reciprocal” tariffs he levied on nearly every other country.
It’s the first major piece of Trump’s broad agenda to come squarely before the nation’s highest court, which he helped shape with the appointments of three conservative jurists in his first term.
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The majority found that it’s unconstitutional for the president to unilaterally set and change tariffs because taxation power clearly belongs to Congress. “The Framers did not vest any part of the taxing power in the Executive Branch,” Chief Justice John Roberts wrote.
Justices Samuel Alito, Clarence Thomas and Brett Kavanaugh dissented.
“The tariffs at issue here may or may not be wise policy. But as a matter of text, history, and precedent, they are clearly lawful,” Kavanaugh wrote.
Trump called the majority decision “a disgrace” when he was notified during his morning meeting with several governors, according to someone with direct knowledge of the president’s reaction who spoke on the condition of anonymity to discuss the private conversation.
Trump was meeting privately with nearly two dozen governors from both parties when the decision was released. The White House did not immediately respond to a request for comment.
The court majority did not address whether companies could get refunded for the billions they have collectively paid in tariffs. Many companies, including the big-box warehouse chain Costco, have already lined up in lower courts to demand refunds. Kavanaugh noted the process could be complicated.
“The Court says nothing today about whether, and if so how, the Government should go about returning the billions of dollars that it has collected from importers. But that process is likely to be a mess,’ as was acknowledged at oral argument,” he wrote.
The Treasury had collected more than USD 133 billion from the import taxes the president has imposed under the emergency powers law as of December, federal data shows. The impact over the next decade was estimated at some USD 3 trillion.
The tariffs decision doesn’t stop Trump from imposing duties under other laws. While those have more limitations on the speed and severity of Trump’s actions, top administration officials have said they expect to keep the tariff framework in place under other authorities.
Still, the decision is a “complete and total victory” for the challengers, said Neal Katyal, who argued the case on behalf of a group of small businesses.
“It’s a reaffirmation of our deepest constitutional values and the idea that Congress, not any one man, controls the power to tax the American people,” he said.
It wasn’t immediately clear how the decision restricting Trump’s power to unilaterally set and change tariffs might affect trade deals with other countries.
“We remain in close contact with the US Administration as we seek clarity on the steps they intend to take in response to this ruling,” European Commission spokesman Olof Gill said, adding that the body would keep pushing for lower tariffs. (Agencies)
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