Trump’s tariffs on Canada, world are unlawful, U.S. Supreme Court rules
Global News
The U.S. Supreme Court ruling is a blow to Trump, who has said the tariffs are 'vital' negotiating tools to reach deals on trade and foreign policy.
The U.S. Supreme Court on Friday ruled that U.S. President Donald Trump overstepped his presidential authority by imposing tariffs on Canada, Mexico and other countries under emergency powers, striking down a central economic and diplomatic strategy that has upended global trade.
A majority of the justices sided with lower courts that had found Trump improperly used tariffs to respond to national emergencies he declared over fentanyl trafficking in North America and international trade deficits, the latter of which led to so-called “reciprocal” tariffs against dozens of nations.
The ruling is a blow to Trump, who has said the tariffs are “vital” negotiating tools to reach deals on trade and foreign policy, and are helping reduce the national debt and pay for certain domestic policy priorities.
The impact of the ruling is not immediately clear.
Trump can still impose tariffs under other authorities, including a national security clause known as Section 232 that targets specific industries rather than countries. Those tariffs on goods including steel, lumber and automobiles remain in place.
A vast majority of goods from Canada and Mexico have also been exempt from the fentanyl-related tariffs due to the Canada-U.S.-Mexico Agreement on free trade (CUSMA). Several countries have also since struck new trade deals with the U.S. that replaced the “reciprocal” tariffs with lower duties.
American businesses forced to pay the tariffs will likely seek refunds from the U.S. government.
A coalition of business owners that signed onto the case, organized under the name We Pay the Tariffs, said Thursday that revenues from presidential tariffs totalled a record US$175 billion between March and October of last year.
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