The US Supreme Court strikes down Trump tariffs, delivering a landmark ruling that reshapes US trade authority. The 6-3 decision limits former President Donald Trump’s use of emergency powers to impose sweeping duties. As a result, the judgment reasserts congressional control over tariff policy.
US Supreme Court Strikes Down Trump Tariffs Under IEEPA
The US Supreme Court strikes down Trump tariffs imposed under the International Emergency Economic Powers Act (IEEPA). Chief Justice John Roberts wrote that the Constitution grants tariff authority to Congress alone. Therefore, the ruling blocks unilateral tariff actions without clear legislative approval.
The court specifically invalidated tariffs targeting Mexico, Canada, China, and Brazil under emergency justifications. Trump had cited fentanyl flows and trade deficits as economic emergencies. However, the majority found no explicit congressional authorization for such sweeping measures.
Meanwhile, the decision leaves intact tariffs on steel, aluminum, and autos imposed under other trade statutes. Those measures rely on established authorities such as Section 232 national security provisions.
Market and Legal Implications After the Trump Tariffs Decision
The ruling triggers significant uncertainty across global commodity and metals markets. The Trump administration collected an estimated $175 billion under IEEPA tariffs. Now, companies seek refunds through ongoing litigation.
Energy and refining groups, including Valero and Marathon Petroleum, have filed lawsuits to recover tariff payments. As a result, US trade litigation will likely intensify over the coming months. Market participants now monitor how quickly authorities process potential reimbursements.
Furthermore, Trump announced plans to invoke Section 122 of the 1974 Trade Act. That provision allows tariffs up to 15 percent for 150 days. However, any extension requires congressional approval. Lawmakers from both parties have expressed concern over tariff-driven price pressures.
Research from the Federal Reserve Bank of New York shows US companies and consumers bore about 90 percent of tariff costs. Consequently, higher input prices affected metals, battery materials, and automotive supply chains. The effective US tariff rate climbed to roughly 13 percent in late 2025, up sharply from 2.6 percent a year earlier.
International reactions remain cautious. The European Union stated it will seek clarity from Washington before adjusting trade strategy. Therefore, global partners now await signals on future US tariff tools, including Sections 232 and 301.
SuperMetalPrice Commentary:
The US Supreme Court strikes down Trump tariffs decision restores congressional authority and injects near-term volatility into commodity markets. However, it also reduces long-term policy unpredictability. Metals producers and battery material suppliers should prepare for transitional trade measures under alternative statutes. As Washington recalibrates its strategy, market players must hedge exposure to tariff risk and monitor legislative developments closely.
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