On Friday, the US Supreme Court issued a landmark ruling declaring that former President Donald Trump's global tariffs were illegal, overturning a key aspect of his economic policy. The conservative-majority court found that Trump's reliance on the International Emergency Economic Powers Act (IEEPA) of 1977 did not provide him the authority to impose tariffs on a broad scale. This decision not only signifies a defeat for Trump but also challenges the extent of presidential powers in trade matters.

While the ruling does not reverse the sector-specific tariffs imposed by Trump on items such as steel and aluminum, it does call into question the legality of similar economic practices. The court's decision marks a pivotal moment in US trade policy, especially considering Trump's aggressive use of tariffs as a tool for negotiating trade agreements and exerting diplomatic pressure on other nations. The ruling could also impact ongoing investigations into other sectoral tariffs, potentially leading to further changes in the legal landscape surrounding trade.

This setback for Trump is particularly significant as it represents his largest loss at the Supreme Court since his return to the White House. The ruling not only reflects judicial opposition to Trump's trading practices but also emphasizes the checks and balances inherent in the US government system, where Congressional authority over tariffs remains crucial. As the former president's economic strategies are increasingly scrutinized, the future of US trade policy may face new directions depending on the outcomes of ongoing government probes.