Supreme Court Tariff Decision
Learning Resources, Inc. v. Trump consolidated with: Trump v. V.O.S. Selections
Issue
Whether the International Emergency Economic Powers Act (IEEPA) authorizes the President to impose tariffs.
Decision of the Court:
n a 6-3 decision, the Supreme Court held that the International Emergency Economic Powers Act (IEEPA) does not grant President Donald Trump the authority to impose sweeping global tariffs. Justices Thomas, Alito, and Kavanaugh dissented, and Chief Justice Roberts delivered the majority opinion. This highly anticipated ruling undercuts a major economic policy for the Trump Administration and delivers his largest legal defeat in his second term. The Supreme Court concluded that Trump overstepped his authority by invoking the IEEPA to impose his “reciprocal” tariffs across the globe. The court concluded that the “lack of historical precedent” and “breadth of authority” demonstrates that the sweeping tariffs extend beyond the reach of the Executive branch.
Implications of the Decision:
President Donald Trump announced he would impose a new 25% tariff on any country trading with Iran and warned of economic chaos if the Supreme Court rules his existing tariff orders illegal. The Court has delayed its decision, which was expected last week and could still come as soon as today; analysts note that such delays often signal extended deliberation and may increase the likelihood the Court sides with the administration. While Trump claims trillions could be at risk, economists estimate potential tariff refunds closer to $135 billion and expect limited market impact, particularly since the administration could reinstate tariffs through other legal avenues if necessary.
Background
In early 2025, President Donald Trump signed a series of executive orders under the authority given by the International Emergency Economic Powers Act (“IEEPA”). The order implemented sweeping tariffs and reciprocal tariffs on imported goods. In response to the tariffs, a coalition of states and small businesses challenged the executive orders, and the Supreme Court heard oral arguments on November 5, 2025, to determine whether the International Emergency Economic Powers Act authorizes President Donald Trump to impose tariffs.
