The United State. Supreme Court ruled 6-3 that President Donald Trump lacked the authority to impose sweeping global tariffs under a 1977 emergency powers law, reinforcing Congress’ constitutional role over tariffs.
In a majority opinion written by Chief Justice John Roberts, the court held that the International Emergency Economic Powers Act does not grant the president unilateral authority to levy broad, indefinite tariffs on nearly all U.S. trading partners.
Trump used the International Emergency Economic Powers Act to impose a 10 per cent global tariff and higher “reciprocal” tariffs on certain nations after declaring the U.S. trade deficit a national emergency.
The Constitution assigns the power to set tariffs to Congress, while IEEPA authorizes the president to “regulate” imports and exports in response to an “unusual and extraordinary threat.”
The law does not specifically mention tariffs — an omission that proved central to the dispute.
The decision has only a minor impact on Canadian exports, most of them exempted because they are covered by the Canada-United States-Mexico (CUSMA) free trade agreement.
