The US Supreme Court has issued a ruling that presents a major setback for President Donald Trump, stating that he does not possess the legal authority to impose tariffs. The court determined that tariffs imposed on various countries during Trump's presidency were unlawful, asserting that he improperly utilized emergency powers designated for national issues. The ruling voted 6-3, led by Chief Justice John Roberts, upheld a lower court's decision that Trump misused the International Emergency Economic Powers Act (IEEPA) to implement the tariffs.

This decision stems from a law enacted in 1977, which permits the President to regulate commerce during a national emergency, but does not explicitly mention the power to impose tariffs. The Supreme Court's judgement highlighted that Trump had not sought the necessary approval from Congress for the tariffs, which critics have argued undermines the system of checks and balances that is foundational to US governance. The court's ruling reaffirms the limits of executive power, particularly in economic policy matters.

This judgment could have significant implications for future trade policies, as it reinforces the idea that substantial economic measures, like tariffs, require legislative authorization. Moreover, it signals that the judiciary will not hesitate to intervene if it perceives the executive branch overstepping its authority, thereby ensuring that presidential powers are subject to legal scrutiny. Trump administration's inability to enforce such tariffs without congressional consent could lead to a fundamental re-evaluation of approaches to international trade in the future.