The US Supreme Court, in a 6-3 ruling, has struck down a large part of the 'reciprocal tariffs' that were indiscriminately imposed by former President Donald Trump on over a hundred countries. This landmark decision has grave implications for Trump's economic policy, as it leaves the country facing the prospect of refunding tens of billions of dollars collected through what the court deemed illegally assessed tariffs. The 170-page ruling highlights the legal controversies surrounding the use of emergency powers under the 1977 International Emergency Economic Powers Act (IEEPA) that Trump utilized to impose these tariffs.

The decision specifically addresses the reciprocal tariffs aimed primarily at trading partners, including significant countries such as China, Canada, and Mexico. Although the Supreme Court's ruling does not encompass all tariffs enacted during Trump’s presidency, it challenges the legality of tariffs that were justified under emergency powers, which may have been overreached according to the Court. This has raised significant questions about the precedents set during Trump's administration regarding trade policies and executive powers.

The ramifications of this ruling extend beyond immediate financial implications, as it may encourage further legal challenges against the tariff regime established under previous administrations. The outcome could reshape US trade relations and policy as the Biden administration navigates these changes, possibly leading to an overhaul of the approach towards tariffs and international trade agreements.