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Fortune
Fortune
Business
Nick Lichtenberg, Jake Angelo, Lily Mae Lazarus

Supreme Court slaps down $175 billion worth of Trump tariffs as unconstitutional

roberts (Credit: Win McNamee—Getty Images)

The Supreme Court ruled 6–3 on Friday morning that the president cannot impose tariffs under the International Emergency Economic Powers Act (IEEPA), as Trump has done throughout much of 2025. This puts more than $175 billion in U.S. tariff collections at risk of having to be refunded, Penn Wharton Budget Model economists calculated for Reuters.

Supreme Court Chief Justice John Roberts ruled that based on two words in the IEEPA, “regulate” and “importation,” Trump has asserted the independent power to impose tariffs on imports from any country, of any product, at any rate, for any amount of time. “Those words cannot bear such weight.” Dissenting were Justices Thomas, Alito, and Kavanaugh, ScotusBlog reported. Justice Neil Gorsuch, a Trump appointee, concurred in a 46-page opinion.

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