In what may be a major victory for global trade, the US Supreme Court has struck down President Donald Trump’s sweeping global tariffs, ruling that he exceeded his authority under the International Emergency Economic Powers Act (IEEPA).

In a judgment delivered yesterday, the Chief Justice John Roberts ruled that “The President asserts the extraordinary power to unilaterally impose tariffs of unlimited amount, duration, and scope… he must identify clear congressional authorisation to exercise it.”

In the tariff revenue: Over $175 billion collected under IEEPA-based tariffs may need to be refunded, the Chief Justice John Roberts said, “The framers did not vest any part of the taxing power in the Executive Branch.”

On impact on trade, ruling may affect U.S. trade policy and relations with other countries, Justice Brett Kavanaugh stated. “The tariffs at issue here may or may not be wise policy.

But as a matter of text, history, and precedent, they are clearly lawful.” Indeed the ruling has been greeted worldwide with jubilation.

Last year, Trump placed taxes on goods imported into the US, saying it would boost American manufacturing Instead of getting Congressional approval, the Trump administration used the 1977 International Emergency Economic Powers Act.

Declaring an emergency under the law meant Trump could issue immediate orders and bypass Congress. In August 2025, a US Appeals court ruled that most of Trump’s tariffs were illegal, but left them in place.

The Supreme Court got involved when the White House requested they overturn that appeals court decision.