The US Supreme Court changed the US trade agenda on Friday, ruling that blanket tariffs are illegal and striking down President Trump’s most sweeping tariffs.
In a 6-3 decision, the court held that the 1977 International Emergency Powers ACT (IEEPA) does not give Trump the authority to impose taxes without approval from Congress.
This ruling will mean that much of the administration’s current tariff agenda will be brought to a halt, especially those tariffs first announced in April last year, on what has come to be known as Trump’s “Liberation Day” tariffs.
Today, economists at Penn-Wharton said that over $175 billion in tariff revenue may need to be refunded if the Supreme Court rules against Trump’s tariffs.
However, according to SCOTUSblog, the court mentioned nothing about whether the government should go about returning the billions of dollars it made from importers.
Justices Clarence Thomas, Brett Kavanaugh and Samuel Alito all dissented.
Justice Kavanaugh in his dissent, said: “The United States may be required to refund billions of dollars to importers who paid the IEEPA tariffs, even though some importers may have already passed on costs to consumers or others.”