A Federal Reserve Bank of New York report released last week, using data from the U.S. Census Bureau through November 2025, found U.S. consumers and firms paid for nearly 90 percent of the tariffs in 2025.
NEW YORK, Feb. 20 (Xinhua) — The U.S. Supreme Court ruled on Friday that U.S. President Donald Trump’s sweeping tariffs under a law meant for use in national emergencies are illegal.
In a 6-3 ruling, the Supreme Court said that the tariff policies under the International Emergency Economic Powers Act (IEEPA) are unconstitutional, officially striking down the global tariffs Trump has introduced since April.
The justices ruled that the president did not have the authority under IEEPA to impose import tariffs on goods from nearly all the U.S. trading partners.
The voting upheld that it is the right of Congress to impose taxes, not the president.
The ruling is expected to affect global trade, companies, inflation and the pocketbook of every U.S. citizen, local media reported Friday.
Trump announced on April 2 that the United States has established a “minimum baseline tariff” of 10 percent on practically all imported goods, plus even higher rates on certain trading partners, claiming that higher tariffs would help bring in revenue for the government and revitalize the U.S. manufacturing.
On April 23, a coalition of 12 U.S. states sued the Trump administration over the “illegal tariffs” in the U.S. Court of International Trade in New York.
A federal appeals court on Aug. 29 upheld the ruling by the Court of International Trade, saying that Trump wrongfully invoked IEEPA to issue the tariffs.
In September, the Trump administration appealed to the Supreme Court to rule on the legality of the tariffs.
On Friday, the Supreme Court ruled that the Trump administration’s interpretation of IEEPA would intrude on the powers of Congress and violate a legal principle called the “‘major questions’ doctrine,” which requires actions of “vast ‘economic and political significance'” by the government’s executive branch to be clearly authorized by Congress.
Chief Justice John Roberts delivered the opinion of the court, saying the president must “point to clear congressional authorization” to justify his extraordinary assertion of the power to impose tariffs.
Justices Clarence Thomas, Samuel Alito and Brett Kavanaugh dissented in the vote.
The ruling did not specify whether tariffs that have been paid under the higher rates will be refunded.
U.S. Customs and Border Protection said it had collected more than 200 billion dollars between Jan. 20 and Dec. 15, 2025.
For the IEEPA-specific tariffs, the Trump administration said it had collected about 129 billion dollars in revenue as of Dec. 10.
A Federal Reserve Bank of New York report released last week, using data from the U.S. Census Bureau through November 2025, found U.S. consumers and firms paid for nearly 90 percent of the tariffs in 2025.
The U.S. National Retail Federation said the ruling provides “much-needed certainty for U.S. businesses and manufacturers, enabling global supply chains to operate without ambiguity.”
Similarly, the Footwear Distributors and Retailers of America welcomed the ruling as “an important step toward creating a more predictable and competitive environment for American businesses and consumers.” ■
