In a massive legal defeat for Donald Trump, the Supreme Court has officially blocked his global tariff plan. While the President argued that these taxes were necessary for national security, the Court ruled 6-3 that he overstepped his bounds. The justices clarified that under the Constitution, only Congress has the power to tax the American people—the President can’t just use “emergency powers” as a blank check to overhaul trade policy on his own.
This decision is a huge deal because it effectively shuts down a $3 trillion economic strategy. Small businesses and several states fought back, arguing that these import taxes were illegal, and the Court agreed. Now, the government might have to pay back the $133 billion already collected, with major companies like Costco already lining up for refunds. While the administration might try to find a loophole to bring the tariffs back, for now, the President’s signature trade weapon has been sidelined.
