Regulatory Update
U.S. Supreme Court Strikes Down Trump Tariffs

The U.S. Supreme Court on Friday struck down global tariffs President Donald Trump levied last year under the International Emergency Economic Powers Act (IEEPA).
In a 6-3 decision, the court ruled the tariffs, including sweeping reciprocal tariffs, to be unconstitutional. Specifically, the justices noted taxation powers belong to Congress and not the Executive Branch.
“The Government thus concedes, as it must, that the President enjoys no inherent authority to impose tariffs during peacetime,” Chief Justice John Roberts wrote. “And it does not defend the challenged tariffs as an exercise of the President’s warmaking powers. The United States, after all, is not at war with every nation in the world.”
Justices Brett Kavanaugh, Samuel Alito and Clarence Thomas dissented. In the dissenting opinion, Kavanaugh wrote that the IEEPA authorizes the president to impose tariffs. He also pointed to the potential for refunding tariffs, which Kavanaugh said would have “significant consequences for the U.S. Treasury.”
“The Court says nothing today about whether, and if so how, the Government should go about returning the billions of dollars that it has collected from importers,” Kavanaugh wrote. “But that process is likely to be a ‘mess,’ as was acknowledged at oral argument.”
Leslie G. Sarasin, president and CEO of FMI, the Food Industry Association, urged Congress and the Trump Administration to work together to provide clarity for food businesses and consumers. Sarasin also called for preserving exemptions for agricultural goods not produced in the U.S., aligning with Trump’s move to repeal reciprocal tariffs on these items in November.
“These exemptions have been critical for ensuring adequate supply and they support President Trump’s efforts to keep groceries affordable for the American people,” Sarasin says. “As the implications of this decision become clearer in the coming weeks, we stand ready to work with the Trump administration and policymakers to ensure we continue to have the safest, most abundant and affordable food supply in the world.”
In a joint statement, National Association of Manufacturers (NAM) President and CEO Jay Timmons and NAM Board Chair Blake Moret said “ongoing legal and policy uncertainty” makes it difficult for manufacturers to plan investments and pursue growth.
“Now is the time for policymakers to work together to provide a clear and consistent framework for trade, one that strengthens domestic manufacturing, secures supply chains for critical inputs, empowers the administration to negotiate strong trade deals and ensures manufacturers can access the materials and components they need to grow, compete and create jobs in America and the export markets they need to sell U.S.-made goods around the world,” they said. “If tariffs are utilized as a tool, they should be targeted to countries engaged in specific unfair trade practices, particularly by nonmarket economies.”
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