Supreme Court Rules Trump's Global Tariffs Illegal

On Friday, the U.S. Supreme Court ruled in a 6-3 decision that former President Donald Trump's sweeping global tariffs were illegal, stating that the International Emergency Economic Powers Act (IEEPA) does not authorize the president to impose such tariffs.

This ruling represents a major setback for Trump's economic agenda, as he had relied on tariffs to pressure trade negotiations with various countries, including Mexico, Canada, and China. The court's opinion, delivered by Chief Justice John Roberts, noted that the IEEPA does not explicitly mention tariffs.

The ruling upholds a lower court's decision and blocks the tariffs from taking effect. The National Retail Federation welcomed the ruling, emphasizing the need for certainty for American manufacturers.

The decision is expected to reduce average tariff rates significantly, from 16.9% to around 9.5%. Analysts estimate that the loss of tariff revenue could amount to approximately $140 billion for the U.S. government.