Supreme Court strikes down Trump tariffs 

The Supreme Court ruled today that President Trump did not have authority under the International Emergency Economic Powers Act to impose sweeping tariffs.

President Trump said at a press conference that he is “absolutely ashamed” of the Supreme Court after it struck down his sweeping tariffs agenda, Axios reported. Trump has previously said he will use other laws to achieve the same goals.  

“In a 6-3 decision, the justices ruled the president did not have the authority under a 1977 emergency economic powers law to impose a vast array of import levies on goods from nearly all of the nation’s trading partners,” The Washington Post reported. 

“The decision is expected to reverberate widely, affecting global trade, consumers, companies, inflation and the pocketbooks of every American,” the Post added. The ruling did not make clear if the government will have to return the tariffs collected, but a coalition of small businesses has already called for repayment, the Post said. 

The New York Times published the full opinion, and in an analysis noted, “The court’s 6-3 decision has significant implications for the U.S. economy, consumers and the president’s trade policy.”

“The Trump administration had said that a loss at the Supreme Court could force the government to unwind trade deals with other countries and potentially pay hefty refunds to importers,” the Times said.

Washington Trade Daily said in an analysis, “The ruling does not affect tariffs imposed by the president on specific products like steel, aluminum and autos under a separate national security law, Section 232. The ruling paves the way for importers to demand refunds of the tariffs they have paid. The Treasury Department has said over $133 billion was collected so far from the IEEPA tariffs.”

REACTION

Rep. Angie Craig, D-Minn., the ranking member on the House Agriculture Committee and a candidate for the Democratic nomination for the Senate from Minnesota, said, “Tariffs have wreaked havoc on the American economy by driving up the price of everyday goods for hardworking Americans and businesses.”

“They’ve been especially disruptive for our growers, producers and ranchers who have been suffering under the weight of high input costs and lost market access,” Craig said.

“While I applaud the Supreme Court for reigning in the president’s power to issue tariffs by decree, I fear these tariffs have already caused lasting damage to farm country. While Trump promised to deliver a ‘Golden Age’ for agriculture, his tariffs cost our farmers billions in lost revenue and handed our export markets to agricultural competitors like Argentina and Brazil.

“These losses will take years to recover from. Congress must provide struggling farmers and families with meaningful relief, and the Agriculture Committee should prioritize helping American farmers survive by focusing on a truly bipartisan farm bill that addresses the current challenges our growers are facing,” Craig said.

Sen. Chuck Grassley, R-Iowa, said, “I’m one of the only sitting members of Congress who was in office during IEEPA’s passage. Since then, I’ve made clear Congress needs to reassert its constitutional role over commerce, which is why I introduced prospective legislation that would give Congress a say when tariffs are levied in the future.”

“President Trump is a very skilled negotiator, and I want him to continue to be successful in expanding market access,” Grassley said.

“He’s already succeeded in deals, including getting American beef into Australia, ethanol and beef into England, rice into Japan and pork into Taiwan. I appreciate the work he and his administration are doing to restore fair, reciprocal trade agreements.

“I urge the Trump administration to keep negotiating, while also working with Congress to secure longer-term enforcement measures so we can provide expanded market opportunities and certainty for Iowa’s family farmers and businesses,” Grassley said.

House Ways and Means Committee Chairman Adrian Smith, R-Neb., said, “Since Day One, President Trump has been committed to leveling the playing field for American farmers, ranchers, manufacturers, and workers. In light of the Supreme Court’s decision, we must ensure our trading partners uphold the market access commitments already secured and continue advancing policies which promote fair competition worldwide.”  

Rep. Richard Neal, D-Mass., the ranking member on Ways and Means, said, “Today’s decision is a victory for the American people, the rule of law, and our standing in the global economy.”

“The highest court in the land affirmed what we have long argued: the president never had the authority to wreak the havoc he did by unilaterally imposing tariffs under IEEPA. He drove up grocery and energy prices, destabilized small businesses, strained trade relationships while threatening global security, and now, thanks to our persistence, the Trump Administration must make consumers and businesses whole,” Neal said.

“Congress writes trade law, and today’s ruling restores that fundamental truth. The Constitution is clear, and no president — Trump or anyone else — can invent powers they do not have. As the president continues to push our allies into the arms of our adversaries, this resounding decision should compel House Republicans to end their complicit silence and put a bill on the floor to stop the executive overreach into trade policy.

“Ways and Means Democrats will continue fighting for trade policy rooted in transparency, the rule of law, and the best interests of the American people, not Trump and his allies,” Neal said.

Brian Kuehl, executive director of Farmers for Free Trade, a coalition of farm organizations, said, “Today’s Supreme Court decision is an important step toward restoring predictability and the rule of law in American trade policy.”

“Tariffs imposed under IEEPA have been devastating for American farmers, driving up costs for inputs like fertilizer, equipment, and parts while triggering retaliatory tariffs that cut off critical export markets. Farmers have been caught in the crossfire, paying more for what they need while losing access to the customers they depend on,” Kuehl said.

“Despite today’s ruling, we remain deeply concerned that the administration will reimpose tariffs through other means. Any new approach would likely invite the same retaliation from our trading partners that has already caused so much damage to American farmers. Tariffs hurt farmers on both ends, raising what they pay and reducing where they can sell.

“The focus now must be on restoring stable trade relationships and expanding market access for American agricultural products, not finding new ways to harm farmers with tariffs.

“We urge the administration to work with Congress on comprehensive trade solutions that open markets rather than close them, and to resist the temptation to replace one problematic tariff authority with another. American farmers are the most productive in the world, but they need access to markets, not more barriers and retaliation,” Kuehl said.

The International Fresh Produce Association said, “IFPA welcomes the Supreme Court’s decision clarifying the limits of IEEPA and reaffirming that broad, country-specific tariffs fall outside its intended scope.

“The global trade of fresh produce is essential to the health and well-being of people in every nation, and today’s ruling helps restore predictability to a uniquely complex, seasonally driven marketplace,” the group said.

“IFPA does not believe tariffs should be used as a default response to every trade concern facing the United States, nor should this ruling simply prompt a shift to other tariff authorities. Instead, IFPA hopes this ruling allows policymakers to move beyond broad tariff actions and continue working toward lower trade barriers that ensure affordable access to fresh produce and floral products.”

American Soybean Association President Scott Metzger, an Ohio farmer, said, “The case at the Supreme Court has been closely followed by soybean farmers who have seen the cost of inputs rise over the past year due to tariffs.”

“U.S. soybean growers are reliant upon imports for critical farming tools like fertilizer, seeds, pesticides and agriculture equipment. Moving forward, certainty and dependable market access are essential for U.S. soy to remain competitive globally,” Metzger said.

“Because farmers are caught in a cost-price squeeze and ag input costs remain high, we urge the president to refrain from imposing tariffs on agricultural inputs using other authorities.”

Kip Eideberg, Association of Equipment Manufacturers senior vice president of government and industry relations, said, “Today’s Supreme Court ruling that the IEEPA tariffs are unlawful is welcome news for equipment manufacturers, which have spent the last year navigating higher input costs and mounting trade uncertainty.”

“The industry supports the administration’s efforts to bring manufacturing back to the United States and secure domestic supply chains, but tariffs on critical parts and components have significantly raised the cost of domestic manufacturing and have made U.S.-made equipment less competitive in America as well as in foreign markets,” Eideberg said.

“This has resulted in disrupted supply chains, delayed capital investments, reduced investment in R&D, and a slowdown in the expansion of domestic manufacturing capacity. 

“Importantly, even with IEEPA tariffs being overturned, equipment manufacturers still face Section 232 tariffs on steel and aluminum, which raise the cost of critical parts and components that are not produced in the U.S. What equipment manufacturers need most is certainty so they can make long-term decisions that benefit their workers, their customers, and the broader U.S. economy,” Eideberg said.

“We urge the administration to use today’s ruling as an opportunity to chart a new course for tariff policy and secure more trade agreements that expand market access for America’s equipment manufacturers. Fair, balanced, and mutually beneficial trade relationships with our allies and partners keep supply chains resilient, commerce flowing, and support millions of equipment manufacturing jobs across the country.”