Supreme Court Strikes Down Trump Tariffs

The Supreme Court turned the U.S. trade landscape upside down with a decision on Friday striking down the centerpiece of President Donald Trump’s tariff program.

Just over one year into the President’s second term, the 6-3 ruling in “Learning Resources, Inc. v Trump” comes after Supreme Court justices showed skepticism in questioning during oral arguments last November.  The ruling appears to halt a massive section of Trump’s tariffs that he announced last year on what he referred to as “Liberation Day".

Trump said a 1977 law called the International Emergency Economic Powers Act gave the president the ability to declare an economic emergency and take action, but it doesn’t specific tariffs as a specific remedy to the emergency.

“IEEPA doesn’t authorize the President to impose tariffs,” read the decision by Chief Justice John Roberts.  The Court’s decision doesn’t appear to address the question of eligibility for tariff refunds, which is likely to lead to a complex legal process for companies.

In response over the week, Trump issued a 10% global tariff on all products, and later raised that figure to 15%. 

Farmers for Free Trade applauded last week's decision.  Director Brian Kuehl said the decision is an important step toward restoring predictability and the rule of law in American trade policy.   

"Today's Supreme Court decision is an important step toward restoring predictability and the rule of law in American trade policy. Tariffs imposed under IEEPA have been devastating for American farmers, driving up costs for inputs like fertilizer, equipment, and parts while triggering retaliatory tariffs that cut off critical export markets," said FFFT Director Brian Kuehl.  "Farmers have been caught in the crossfire, paying more for what they need while losing access to the customers they depend on.

"Despite today's ruling, we remain deeply concerned that the administration will reimpose tariffs through other means. Any new approach would likely invite the same retaliation from our trading partners that has already caused so much damage to American farmers. Tariffs hurt farmers on both ends, raising what they pay and reducing where they can sell.

"The focus now must be on restoring stable trade relationships and expanding market access for American agricultural products, not finding new ways to harm farmers with tariffs. We urge the administration to work with Congress on comprehensive trade solutions that open markets rather than close them, and to resist the temptation to replace one problematic tariff authority with another. American farmers are the most productive in the world, but they need access to markets, not more barriers and retaliation."

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