The US Supreme Court, holding a conservative majority, ruled in a 6-3 decision that the International Emergency Economic Powers Act (IEEPA) does not grant the president the power to impose tariffs. This ruling comes in light of President Trump's extensive use of tariffs as a tool for negotiation, categorizing them as a mechanism to pressurize foreign trade partners. Last year, following his return to the presidency, Trump invoked economic emergency powers in an unprecedented manner to impose new tariffs on nearly every US trading partner.

The Supreme Court's decision emphasized that if Congress had intended to grant the president exclusive and specific authority to impose tariffs under the IEEPA, it would have expressly done so, as seen in other tariff legislation. This clarification from the Court further limits the executive power by reaffirming the legislative branch's authority in trade regulation, potentially shaping future interactions between the presidency and Congress on economic matters.

In practical terms, this ruling may signal a reduction in tariff-related negotiations and policies historically relied upon by the Trump administration, calling into question future measures that depend on presidential power to enforce tariffs. It opens a debate on whether Congress will have to redefine or enhance its role regarding trade policies in the context of emergencies, indicating a significant check on executive authority regarding economic governance.