Supreme Court Strikes Down Trump Tariffs, Markets Rally; Crypto Briefly Bounces

In a 6–3 decision the Supreme Court ruled that President Donald Trump’s sweeping global tariffs were illegal. Chief Justice John Roberts authored the majority opinion, joined by Justices Amy Coney Barrett, Neil Gorsuch, Ketanji Brown Jackson, Elena Kagan and Sonia Sotomayor; Justices Clarence Thomas, Samuel Alito and Brett Kavanaugh dissented.

"A victory for the wallets of every American consumer. Trump’s illegal tariff tax just collapsed—He tried to govern by decree and stuck families with the bill," Senate Democratic Leader Chuck Schumer said. The dispute centered on Mr. Trump’s use of the International Emergency Economic Powers Act to impose broad "reciprocal" tariffs in 2025 on imports from China, Canada, Mexico, the European Union, Japan and South Korea.

The Court held that IEEPA does not grant the president unilateral authority to enact sweeping trade tariffs, leaning on the "major questions doctrine." Sector-specific tariffs under Section 232 remain intact, but most global duties imposed under IEEPA have been invalidated.

United States

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