WASHINGTON DC — In a landmark 6-3 decision, the U.S. Supreme Court on Friday struck down President Donald Trump's sweeping global tariffs, delivering a major blow to the centerpiece of his economic agenda and representing a rare judicial check on his expansive use of executive authority .

The ruling invalidates the so-called "Liberation Day" tariffs imposed in April 2025, which applied a 10 percent universal tariff on nearly all U.S. trading partners, with higher rates for dozens of countries . Chief Justice John Roberts, writing for the majority, found that Trump exceeded his authority by invoking the International Emergency Economic Powers Act (IEEPA), a 1977 law reserved for national emergencies, to unilaterally impose the taxes on imported goods .

"The Framers did not vest any part of the taxing power in the Executive Branch," Roberts wrote, noting that the Constitution "very clearly" grants Congress the power to impose tariffs . The court emphasized that IEEPA "does not authorize the President to impose tariffs" and contains "no reference to tariffs or duties" .

The Court's Divide

The majority comprised the court's three liberal justices—Ketanji Brown Jackson, Elena Kagan, and Sonia Sotomayor—joined by three conservative appointees: Chief Justice Roberts and Justices Neil Gorsuch and Amy Coney Barrett .

Three conservative justices dissented: Samuel Alito, Clarence Thomas, and Brett Kavanaugh . Kavanaugh, one of Trump's appointees to the court, argued in his dissent that while the tariffs "may or may not be wise policy," they were "clearly lawful" under the text, history, and precedent .

What the Ruling Means

The decision applies specifically to Trump's use of IEEPA for country-wide tariffs, including those justified on grounds of fentanyl trafficking from China, Canada, and Mexico, as well as the "reciprocal" tariffs addressing trade deficits . However, it does not affect industry-specific duties on steel, aluminum, lumber, and automobiles, which were implemented under Section 232 of the Trade Expansion Act of 1962 citing national security concerns .

The ruling opens the door to potentially hundreds of billions of dollars in tariff refunds. Major companies including Costco, Revlon, and Bumble Bee Foods have already filed lawsuits in the US Court of International Trade to secure refunds on the billions they've paid . The Treasury had collected more than $133 billion from the import taxes imposed under IEEPA as of December, federal data shows .

Kavanaugh warned in his dissent that the refund process would "likely to be a 'mess,' as was acknowledged at oral argument" .

Economic and Political Fallout

The economic impact of Trump's tariffs had been estimated at some $3 trillion over the next decade, according to the Congressional Budget Office . Business groups including the Chamber of Commerce warned the measures would hit poorest Americans hardest and cost over 800,000 jobs .

Wall Street responded positively to the ruling, with all the major indices moving higher on Friday. Analysts suggested the decision could cut the U.S. average effective tariff rate by more than half, from 13.6 percent to approximately 6.5 percent .

Trump had been vocal about the case, calling it one of the most important in U.S. history and warning that a ruling against him would be "literally life or death for our country" with "catastrophic" consequences . Hours before the decision, he complained about having to "wait forever" for the ruling .

What Comes Next

While the decision represents a significant setback, administration officials have indicated they will seek alternative legislative authority to maintain tariff barriers . However, other available statutes tend to be either more cumbersome to implement or more limited in scope than the expansive powers Trump claimed under IEEPA .

The ruling marks the first major piece of Trump's broad agenda to be squarely rejected by the Supreme Court, which he helped shape with three conservative appointments during his first term . It comes despite a series of short-term wins on the court's emergency docket that had allowed Trump to push ahead with other aggressive exercises of executive power .

"The court's decision represents a rare check on this president's broad use of executive authority," said BBC North America correspondent Anthony Zurcher in his snap analysis . With other major cases involving controversial uses of presidential power pending—including challenges to efforts ending birthright citizenship—this may not be Trump's only setback from the high court in the coming months.