The U.S. Supreme Court voted 6-3 to overturn tariffs imposed by President Donald Trump under the International Emergency Economic Powers Act (IEEPA).
Liberal Justices Ketanji Brown Jackson, Elena Kagan and Sonia Sotomayor joined conservative Justices Amy Coney Barrett, Neil Gorsuch and Chief Justice John Roberts in voting to strike down the tariffs.
“The administration has interpreted IEEPA to give the president unilateral authority to impose unlimited tariffs and change them at will,” Roberts wrote. “This view would represent a transformative expansion of the president’s authority over tariff policy.”
Roberts noted that in the half-century of IEEPA’s existence, “no president has invoked the statute to impose any tariffs, let alone tariffs of this magnitude and scope.”
He added that the lack of historical precedent, “combined with the extent of the president’s now claimed authority, suggests the tariffs are beyond” Trump’s authority.
Justices Samuel Alito, Clarence Thomas, and Brett Kavanaugh dissident.
“The tariffs at issue here may or may not be wise policy,” Justice Kavanaugh wrote in his dissent. “But they are clearly lawful from the text, history, and precedent.”
Justice Clarence Thomas wrote in his dissent that “neither the statutory text nor the Constitution provide a basis for ruling against the President.”
He added, “The courts have long conveyed to Congress that it can give the president broad discretion in enforcing matters related to other countries’ trade and commerce regulations.”
Also read: Why did the US Supreme Court overturn Trump’s global trade tariffs? Four points of explanation
Will businesses receive tariff refunds?
The Supreme Court did not discuss whether companies can recoup the billions of dollars they have paid in tariffs.
Many companies, including retailer Costco, have petitioned lower courts for refunds.
In his dissent, Justice Kavanaugh noted that the process of refunding levied duties can be complicated and “a mess.”
“The court did not address today whether the government should refund the billions of dollars collected from importers and, if so, how. But as acknowledged during oral argument, the process can be ‘messy,'” he wrote.
National Retail Federation’s reaction
The National Retail Federation (NRF) said the “ruling on tariffs provides much-needed certainty to American businesses.”
“Clear and consistent trade policy is critical to economic growth and creating jobs and opportunity for American families,” the NRF said. “We urge the lower courts to ensure smooth refunds of tariffs to U.S. importers.”
“Refunds will boost economic growth and allow companies to reinvest in their businesses, employees and customers.”
The NRF is one of the top trade groups for retailers and manufacturers.
