US SUPREME COURT BLOCKS TRUMP’S GLOBAL TARIFFS

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Agency report

The US Supreme Court on Friday ruled that President Donald Trump exceeded his authority in imposing a wide range of tariffs that disrupted global trade, blocking a key tool the president has used to advance his economic agenda.

The conservative-majority high court issued a six-three judgment, stating that the International Emergency Economic Powers Act (IEEPA) “does not authorize the President to impose tariffs.”

While Trump has long used tariffs as leverage for pressure and negotiations, he made unprecedented use of emergency economic powers upon returning to the presidency last year to impose new duties on virtually all US trading partners.

These included “reciprocal” tariffs over trade practices that Washington deemed unfair, alongside separate duties targeting major partners Mexico, Canada, and China over illicit drug flows and immigration.

The court noted that “had Congress intended to convey the distinct and extraordinary power to impose tariffs” with IEEPA, “it would have done so expressly, as it consistently has in other tariff statutes.”

The ruling does not affect sector-specific duties that Trump has separately imposed on imports of steel, aluminum, and various other goods. Formal probes that could potentially lead to more such sectoral tariffs remain ongoing.

The Supreme Court’s decision affirms earlier findings by lower courts that tariffs imposed under IEEPA were illegal.

A lower trade court had ruled in May that Trump overstepped his authority with across-the-board levies and blocked most from taking effect, but that decision had been paused as the government pursued an appeal.

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