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The US Supreme Court has ruled that US President Donald Trump exceeded his authority when he imposed a series of tariffs that rocked global trade, blocking a key tool the US leader had used to advance his economic agenda.
The Supreme Court, with a conservative majority, ruled six to three, noting in the ruling that the International Emergency Economic Powers Act (IEEPA) “does not authorize the president to impose tariffs.”
Trump has launched a sweeping tariff crackdown after returning to the White House last year, imposing new tariffs on nearly all of the US's trading partners.
These included “reciprocal” tariffs for trade practices that Washington considers unfair. Such a reciprocal tariff of 10 percent hit not only Kosovo, but also other Western Balkan countries, some with even higher tariffs.
On August 1, Kosovo lifted the 10 percent tariff on American goods.
The US also imposed special tariffs on its major partners such as Mexico, Canada and China, due to drug smuggling and immigration.
The court said in its decision that “if Congress had intended to grant it special authority to set tariffs” through IEEPA, “it would have done so, as it has consistently done in other tariff laws.”
This decision does not affect the sector-specific duties that Trump has imposed separately on imports of steel, aluminum and other goods.
Three liberal justices joined three other conservative justices in ruling on the tariffs, upholding lower court rulings that ruled that tariffs imposed by Trump under the IEEPA were illegal.
Chief Justice John Roberts, while announcing the decision, said that "IEEPA has no reference to tariffs or customs duties."
In May last year, a lower trade court ruled that Trump had exceeded his authority when he imposed broad tariffs, but the decision has not been implemented after the government announced it would appeal./REL
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