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National  + Finance  | 

Supreme Court Rules President Cannot Use IEEPA to Impose Tariffs 

The Supreme Court has struck down President Trump’s tariffs. In a 170-page decision and a 6-3 vote, the court ruled that Trump’s use of the 1977 International Emergency Economic Powers Act (IEEPA) was not lawful. 

The case addressed whether the executive could leverage IEEPA’s emergency authority to set broad, economy-wide tariff duties in response to threats like trade deficits and cross-border drug trafficking.  

Chief Justice Roberts, writing for a majority that included Justices Sotomayor, Kagan, Jackson, Gorsuch and Barrett, emphasized that Article I of the Constitution gives “Congress alone … the power to lay and collect Taxes, Duties, Imposts and Excises.”  

The Court found that while IEEPA authorizes the President to “regulate … importation or exportation,” that term does not include the extraordinary power to impose tariffs. As a result, the Court affirmed lower-court rulings blocking the challenged measures, concluding that the administration’s emergency-based tariff framework exceeded the limits of the statute. 

Justice Thomas, joined by Justices Kavanaugh and Alito, dissented in part. The opinion marks a major curtailment of executive trade authority and reinforces that sweeping tariff power resides with Congress. 

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About Joe Palmisano

Joe Palmisano is Editorial Director for Connect Money, where he brings nearly three decades experience of market insights as a financial journalist, analyst and senior portfolio manager for leading financial publications, advisory firms, and hedge funds. In his role as Editorial Director, Joe is responsible for the selection of content and creation of daily business news covering the financial markets, including Alternative Assets, Direct Investment and Financial Advisory services. Before joining Connect Money, Joe was a financial journalist for the Wall Street Journal, regularly publishing feature stories and trend pieces on the foreign exchange, global fixed income and equity markets. Joe parlayed his experience as a financial journalist into roles as a Senior Research Analyst and Portfolio Manager, writing daily and weekly market analysis and managing a FX and US equity portfolio. Joe was also a contributing writer for industry magazines and publications, including SFO Magazine and the CMT Association. Joe earned a B.S.B.A. in Finance from The American University. He holds the Chartered Market Technician (CMT) designation and is a member of the CFA Institute.

  • ◦Economy
  • ◦Policy/Gov't
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