The US Supreme Court issued a 6-3 decision on Friday ruling that President Donald Trump's tariffs imposed under the International Emergency Economic Powers Act were unconstitutional. Trump responded by announcing new 10 percent global tariffs under a different statute, later raising them to 15 percent. The European Union has paused a recent trade deal with the US amid the resulting uncertainty.
In the case of Learning Resources, Inc v. Trump, the Supreme Court held that the International Emergency Economic Powers Act (IEEPA) did not grant Trump the authority to impose the tariffs, leading to a 6-3 defeat for the administration. The majority opinion, supported by Chief Justice John Roberts, Justices Neil Gorsuch, Amy Coney Barrett, Sonia Sotomayor, Elena Kagan, and Ketanji Brown Jackson, decided the case without invoking the major questions doctrine, despite conservatives' debates over its application.
Trump held a press conference following the ruling, criticizing the justices as 'sleazebags' and 'slimeballs,' while praising dissenting Justice Brett Kavanaugh as a 'genius.' He then imposed new 10 percent global tariffs under a different statute, which he increased to 15 percent over the weekend, dismissing a 150-day expiration requirement and claiming clarity on his unilateral authority.
The decision has created uncertainty, including potential restitution for affected businesses and future tariff challenges. Justice Kavanaugh, in dissent joined by Justices Clarence Thomas and Samuel Alito, argued the doctrine does not apply in foreign affairs contexts, allowing presidents broad powers with minimal congressional authority. Conservatives like Roberts viewed tariffs as a major economic issue requiring the doctrine, while Gorsuch called it a constitutional principle and Barrett described it as a 'common sense' tool.
The ruling prompted the European Union to pause the Turnberry Deal, a July 2025 agreement establishing a 15 percent baseline tariff on EU imports, higher rates for steel and aluminum, and EU commitments to purchase $750 billion in US energy, invest $600 billion, and buy American military equipment. Bernd Lange, chair of the European Parliament’s international trade committee, stated the deal is 'on hold until further notice' due to lack of 'clarity & legal certainty.' He told CNBC that Trump's actions breached the deal and requested assurance of no new tariffs for three years.
Trump warned on Truth Social that countries 'playing games' with the decision would face higher tariffs. Kavanaugh's dissent noted the ruling could generate uncertainty around trade agreements under IEEPA. Separately, FedEx sued the administration on Monday for a full refund of tariffs paid under IEEPA.
