In a major blow to the Trump administration, the Supreme Court has ruled against Trump’s use of tariffs, a major part of his economic strategy in his second term.
On Friday morning, the Supreme Court published its decision in the case Learning Resources, Inc. v. Trump.
The Supreme Court split 6-3, with the majority ruling that President Trump does not have the authority to impose the tariffs under the IEEPA.
The case, which was argued in November, challenged the legality of Trump’s imposition of tariffs through the invocation of the International Emergency Economic Powers Act.
The Supreme Court split 6-3, with the majority ruling that Trump does not have the authority to impose the tariffs under the IEEPA, despite the pretext of declaring a twofold national emergency to address the drug influx from Canada, Mexico, and China and to address the trade deficit, which the administration argued had hollowed out America’s manufacturing base.
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Photo by Nathan Howard/Getty Images
The majority opinion was written by Chief Justice John Roberts, except for a few sections. Justices Sotomayor, Kagan, and Jackson joined the concurrence on only a few of the sections.
Justice Brett Kavanaugh wrote the dissenting opinion and was joined by Justices Clarence Thomas and Samuel Alito.
Thomas wrote a separate dissenting opinion, though he noted that he joined Kavanaugh’s opinion in full. Thomas wrote separately “to explain why the statute at issue here is consistent with the separation of powers as an original matter,” citing the nondelegation doctrine.
President Trump announced a broad array of tariffs on April 2, which he declared “Liberation Day,” with the signing of Executive Order 14257.
Last month, Trump warned the American people of the economic dangers that could be coming to the United States if the Supreme Court ruled against his tariffs.
“The actual numbers that we would have to pay back if, for any reason, the Supreme Court were to rule against the United States of America on Tariffs, would be many Hundreds of Billions of Dollars, and that doesn’t include the amount of ‘payback’ that Countries and Companies would require for the Investments they are making on building Plants, Factories, and Equipment, for the purpose of being able to avoid the payment of Tariffs. When these Investments are added, we are talking about Trillions of Dollars!” Trump wrote on Truth Social on January 12.
In the same post, Trump stressed the dire straits the country would be in in the event of a negative decision: “It may not be possible but, if it were, it would be Dollars that would be so large that it would take many years to figure out what number we are talking about and even, who, when, and where, to pay. Remember, when America shines brightly, the World shines brightly. In other words, if the Supreme Court rules against the United States of America on this National Security bonanza, WE’RE SCREWED!”
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