Summary of this article
The Supreme Court of the United States, in a 6–3 ruling, struck down former President Donald Trump’s sweeping global tariffs, holding that they exceeded executive authority.
The Court said the administration failed to show clear congressional authorisation under emergency economic powers laws, reinforcing Congress’s primary role in regulating trade.
The decision will not affect India-US trade deal, claims Trump.
In a significant blow to President Donald Trump’s trade agenda, the Supreme Court of the United States has ruled that a series of sweeping global tariffs imposed during his administration were unlawful.
Delivering a 6–3 verdict, the Court held that the tariffs exceeded the authority granted to the executive branch under federal law. Chief Justice John Roberts, writing for the majority, emphasised that while the president holds certain powers in matters of foreign trade, such authority must stem from clear congressional authorisation.
“The president asserts the extraordinary power to unilaterally impose tariffs of unlimited amount, duration, and scope,” Roberts wrote, adding that such broad authority requires explicit approval from Congress, something the Court found lacking in this case.
At the heart of the dispute was the administration’s reliance on the International Emergency Economic Powers Act (IEEPA) of 1977. The law permits the president to regulate economic transactions during a declared national emergency. Trump invoked it to justify tariffs ranging from 10% to 50% on goods from multiple countries, arguing that trade deficits and drug trafficking constituted extraordinary threats to national security.
However, the Court ruled that the statute did not provide sufficient grounds for the sweeping measures imposed. In doing so, it reaffirmed Congress’s constitutional role in regulating commerce and signalled limits to the executive branch’s ability to reshape trade policy through emergency powers alone.
Notably, the ruling does not affect certain industry-specific tariffs, including those on steel, aluminium, lumber, and automobiles, which were imposed under Section 232 of the Trade Expansion Act of 1962 on national security grounds.
The judgment is expected to reverberate across global markets. Economies and corporations impacted by the tariffs may now reassess trade strategies and potential financial claims. Trump had previously warned that an adverse ruling could expose the United States to repayments amounting to hundreds of billions, possibly even trillions, of dollars.
President Trump told reporters on Friday that he was considering a limited military strike to pressure Iran into a deal.“I guess I can say I am considering that,” he said at the start of a meeting with governors at the White House. The Times has reported that Trump is weighing various options to
Beyond its economic implications, the decision represents a pivotal moment in the ongoing debate over the separation of powers in the United States. By drawing a firm line around executive authority, the Supreme Court has reshaped the contours of presidential power in trade policy, with consequences likely to extend far beyond this single case.
Trade Deal with India to Continue
In the wake of the US Supreme Court’s decision on tariffs, President Donald Trump said there is no change in the trade deal with India and emphasised that the “India deal is on". “I think my relationship with India is fantastic, and we're doing trade with India. India pulled out of Russia. India was getting its oil from Russia. And they pulled way back at my request, because we want to settle that horrible war where 25,000 people are dying every month,” Trump said at a news conference Friday in the White House hours after the US Supreme Court verdict striking down his sweeping tariffs.
He said his relationship with Prime Minister Narendra Modi “is, I would say, great.” Trump then went on to once again repeat the claim that he stopped the war between India and Pakistan last summer using tariffs.
“I also stopped the war between India and Pakistan. As you know, there were 10 planes were shot down. That war was going and was probably going nuclear. And just yesterday, the Prime Minister of Pakistan said President Trump saved 35 million lives by getting them to stop,” Trump said.
“And I did it largely with tariffs. I said, ‘Look, you're going to fight, that's fine, but you're not going to do business with the United States, and you're going to pay a 200 per cent tariff, each country ’. And they called up, and they said, ‘We have made peace’,” Trump said.
When asked about the deal with India, Trump said “nothing changes”.
“Nothing changes. They'll be paying tariffs, and we will not be paying tariffs. So deal with India is that they pay tariffs. This is a reversal for what it used to be, as you know, India, and I think Prime Minister Modi is a great gentleman, a great man, actually, but he was much smarter than the people that he was against in terms of the United States; he was ripping us off. So we made a deal with India. It's a fair deal now, and we are not paying tariffs to them, and they are paying tariffs. We did a little flip,” Trump said.
“The India deal is on…all the deals are on, we're just going to do it” in a different way.
He lashed out at the Supreme Court for its decision to strike down his sweeping tariffs imposed on countries around the world.
“Tariffs have likewise been used to end five of the eight wars that I settled. I settled eight wars, whether you like it or not, including India, Pakistan, big ones, nuclear, could have been nuclear,” Trump said during a news conference Friday just hours after the Supreme Court verdict.
“Prime Minister of Pakistan said yesterday at the great meeting that we had the peace board. He said yesterday that President Trump could have saved 35 million lives by getting us to stop fighting. They were getting ready to do some bad things. But they've given us great national security, these tariffs have,” he said.
