The Supreme Court Strikes Down Trump’s Tariffs
Summary
The Supreme Court has declared Trump's tariffs under the International Emergency Economic Powers Act illegal, paving the way for numerous lawsuits seeking refunds and compensation, potentially amounting to $175 billion, according to CleanTechnica.
Key Insights
What is the International Emergency Economic Powers Act (IEEPA), and why couldn't Trump use it for tariffs?
The IEEPA is a 1977 law granting the president authority to regulate commerce during national emergencies from foreign threats, but the Supreme Court ruled 6-3 that it does not authorize imposing tariffs, as the statute lacks clear language for such broad economic actions, especially under the major questions doctrine.
Will consumers get refunds for the illegal tariffs, and how much money is potentially involved?
The ruling opens the door for billions in refunds, potentially up to $175 billion, primarily to importers who paid the tariffs and have sued to preserve claims; however, there is no automatic mechanism for consumers or small businesses to recoup costs already passed on, likely benefiting large corporations.