Tariffs: the US Supreme Court's setback for Trump

The US Supreme Court has dealt Donald Trump a major setback by ruling that the so-called "reciprocal" tariffs he imposed on almost all of the country's trading partners are illegal. The ruling, handed down today, overturns most of the tariffs introduced since April 2025 and calls into question the very foundation of the US president's economic and diplomatic strategy. It also marks an institutional turning point, reminding us that the power to impose tariffs lies with Congress, not the White House.

The case, known as Learning Resources Inc. v. Trump, was brought by a coalition of small businesses and twelve US states. Six out of nine judges, including three conservatives, ruled that the Trump administration had overstepped its prerogatives by relying on a 1970s emergency law, the International Emergency Economic Powers Act (IEEPA). According to the Court, this text does not explicitly mention the possibility of imposing tariffs, which makes their use by the president incompatible with the Constitution. The judges emphasised that "the framers of the Constitution gave Congress alone the power to impose tariffs in times of peace".

Donald Trump justified these measures by citing the US trade deficit and declaring an economic emergency. His administration argued that this emergency authorised the White House to act unilaterally. But the Supreme Court rejected this argument, ruling that such broad powers must be clearly authorised by Congress. It also invoked the "major questions" doctrine, according to which exceptional powers must be explicitly defined by law.

The consequences of this decision are potentially far-reaching. Over the past year, US trade policy has profoundly changed global economic relations. In particular, Washington had concluded agreements with the European Union, the United Kingdom, Japan and South Korea, providing for average tariffs of 10% to 15% on imports into the United States without equivalent measures in return. These agreements had been negotiated under the threat of higher tariffs, which are now considered illegal.

Another key issue concerns the sums already collected. In 2025, the United States collected $287 billion in import taxes, nearly $200 billion more than before. American companies, which have largely borne the cost of these measures, could now seek reimbursement of the amounts paid. This prospect paves the way for new litigation and increases economic uncertainty.

Politically, the decision weakens Donald Trump, for whom tariffs are much more than an economic tool. They are central to his vision of international relations, based on power relations and bilateral negotiation. The Supreme Court also reiterated the limits of presidential power, at a time when several Republican elected officials have begun to challenge the expansion of the White House's prerogatives.

The Trump administration is already considering other legal options to maintain certain taxes, particularly those based on different legislation, such as in the steel and timber sectors. But the Supreme Court's decision marks a clear halt to the widespread use of tariffs as a political lever. It opens a period of uncertainty for US trade policy and the balance of international trade, while reaffirming the central role of Congress in defining national taxation. Le Monde

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