The Digest:
The United States Supreme Court has struck down sweeping global tariffs imposed by President Donald Trump, ruling 6-3 that his reliance on the 1977 International Emergency Economic Powers Act (IEEPA) to introduce the tariffs was unlawful. Chief Justice John Roberts authored the majority opinion, joined by conservatives Neil Gorsuch and Amy Coney Barrett, along with the three liberal justices. Roberts wrote: "The Framers did not vest any part of the taxing power in the Executive Branch." Conservative Justices Samuel Alito, Clarence Thomas, and Brett Kavanaugh dissented. The decision affects Trump's country-by-country "reciprocal" tariffs, ranging from 34% for China to a 10% baseline for others, and 25% tariffs on some goods from Canada, China, and Mexico. The Congressional Budget Office estimated the tariffs' economic impact at $3 trillion over the next decade. The ruling does not affect steel and aluminum tariffs imposed under different laws.
Key Points:
- The ruling restores billions in potential refunds to companies that paid unlawful tariffs.
- It reinforces constitutional limits on executive power over taxation.
- Importers and consumers gain relief, while the administration suffers a rare Supreme Court setback.
- This signals that even conservative courts will constrain executive overreach.
- The timing, with refund claims pending, triggers potential payouts.
Supreme Court strikes down Trump's global tariffs as unlawful, handing companies potential refunds and affirming Congress's exclusive power over taxation.
Sources: NBC News
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