The U.S. Supreme Court on Friday invalidated a broad set of tariffs imposed during President Donald Trump’s second term, ruling the White House lacked legal authority to enact the duties under a federal emergency-powers law.
In a 6-3 decision, the court said the International Emergency Economic Powers Act does not give the president the power to impose tariffs. Chief Justice John Roberts wrote that “had Congress intended to convey the distinct and extraordinary power to impose tariffs, it would have done so expressly.”
The ruling voids tariffs tied to national emergency declarations related to illegal drug trafficking and trade deficits. The measures included duties on imports from Canada, Mexico, and China, along with wider reciprocal tariffs affecting numerous trading partners.
According to the Wall Street Journal, the tariffs at issue represented a large majority of Trump’s second-term duties and were projected to raise about $1.5 trillion over a decade, citing Tax Foundation estimates. The Journal reported three conservative justices — Clarence Thomas, Samuel Alito and Brett Kavanaugh — dissented.
The decision could carry notable implications for Central Massachusetts companies that have cited tariffs as having a negative impact on their businesses.
In October, Jim Knott, CEO of Northbridge-based welded wire mesh manufacturer Riverdale Mills, said tariffs were having a negative impact on his business, and cast doubt on the idea that tariffs would increase local steel production.
“I don’t really look at Trump’s intent with the tariffs,” Knott said in October. “I look at the outcomes, and what happens in our particular circumstance. The outcome is not great. We export a lot of the product, so handicapping us with high raw material costs tends to hurt us.”
Speaking at WBJ’s Central Mass Manufacturing Summit & Awards in April, Leslie Greis, owner of Worcester-based manufacturer Kinefac Corp., said companies in the sector should carefully manage their financial resources until at least the end of the summer, as the situation with tariffs continued to play out.
Rory Fazendeiro, a business attorney at Worcester law firm Bowditch & Dewey, said the impact of tariffs was forcing some manufacturers to hold off on expansion efforts or big equipment purchases.
Businesses and states challenged the tariffs in court, leading to multiple rulings against the administration before the cases reached the Supreme Court.
The decision limits the use of emergency powers in trade policy and reinforces Congress’ primary authority over tariffs.
WBJ Managing Editor Eric Casey contributed to this article.
