In a 6-3 decision today, the U.S. Supreme Court ruled that the Trump Administration exceeded its authority by imposing “reciprocal” tariffs under the International Emergency Economic Powers Act (IEEPA) and clarified that only Congress may impose these types of trade policies. This decision nullifies these tariffs imposed on countries around the world, including the 35% on imported goods from Canada and 25% on products from Mexico. It is uncertain whether impacted businesses that have already paid the tariffs for the past several months will receive reimbursement for fees collected.
Notably, this decision does not affect the tariffs imposed through other trade statutes, including product-specific tariffs under Section 232 of the Trade Expansion Act of 1962 (e.g., on steel, aluminum, kitchen cabinets, vanities, upholstered furniture, and copper) or Section 301 of the Trade Act of 1974. See Supreme Court Ruling