The Supreme Court Just Struck Down Trump’s Tariffs — Will Companies Be Refunded?
The court ruled 6-3 that the President lacked authority to impose tariffs without Congress, setting up a battle over hundreds of billions in potential refunds.
The Supreme Court ruled Friday that President Trump exceeded his authority by imposing tariffs without Congress. In a 6-3 ruling, the court found that the International Emergency Economic Powers Act, which Trump used to impose many of his tariffs, “does not authorize the President to impose tariffs.” Chief Justice John Roberts delivered the majority opinion. Justices Clarence Thomas, Samuel Alito, and Brett Kavanaugh dissented.
The ruling strikes down tariffs that generated the majority of U.S. tariff revenue last year, including “reciprocal” tariffs and duties related to fentanyl trafficking from Mexico, Canada, and China. The court noted that no president before Trump had ever used the statute to impose tariffs of this magnitude and scope. To justify such powers, Trump must “point to clear congressional authorization,” the court wrote. “He cannot.”
The big question now is refunds. The ruling was silent on whether tariffs already paid must be refunded to importers. Companies could be eligible for payments totaling hundreds of billions of dollars, but the refund process—including who gets paid, when, and how—will be decided by lower courts. In his dissent, Kavanaugh warned the refund process “is likely to be a ‘mess.'”
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The Supreme Court ruled Friday that President Trump exceeded his authority by imposing tariffs without Congress. In a 6-3 ruling, the court found that the International Emergency Economic Powers Act, which Trump used to impose many of his tariffs, “does not authorize the President to impose tariffs.” Chief Justice John Roberts delivered the majority opinion. Justices Clarence Thomas, Samuel Alito, and Brett Kavanaugh dissented.
The ruling strikes down tariffs that generated the majority of U.S. tariff revenue last year, including “reciprocal” tariffs and duties related to fentanyl trafficking from Mexico, Canada, and China. The court noted that no president before Trump had ever used the statute to impose tariffs of this magnitude and scope. To justify such powers, Trump must “point to clear congressional authorization,” the court wrote. “He cannot.”
The big question now is refunds. The ruling was silent on whether tariffs already paid must be refunded to importers. Companies could be eligible for payments totaling hundreds of billions of dollars, but the refund process—including who gets paid, when, and how—will be decided by lower courts. In his dissent, Kavanaugh warned the refund process “is likely to be a ‘mess.'”
Sign up for the Entrepreneur Daily newsletter to get the news and resources you need to know today to help you run your business better. Get it in your inbox.
