Supreme Court Strikes Down Trump's Tariffs in 6-3 Ruling, Issues New Trade Uncertainty

The US Supreme Court has been active with major tariff rulings and oral arguments this week. On February 20, in a landmark 6-3 decision in Learning Resources, Inc. v. Trump, the Court struck down President Trump's sweeping tariffs imposed under the International Emergency Economic Powers Act, or IEEPA. Chief Justice John Roberts wrote the majority opinion, joined by Justices Gorsuch, Barrett, Sotomayor, Kagan, and Jackson, ruling that IEEPA's power to regulate imports does not include taxing through tariffs—a core congressional authority. The decision, applying the major questions doctrine, creates uncertainty for businesses on refunds, trade agreements, and future duties, though Section 232 tariffs on steel and autos remain intact. In response, President Trump quickly imposed new 15% tariffs under Section 122 of the Trade Act of 1974 on most imports, exempting USMCA goods from Canada and Mexico, critical minerals, and some electronics; these expire in 150 days unless Congress extends them.

Shifting to recent hearings, on Monday February 23, the justices heard arguments in a case on congressional abrogation of state sovereign immunity, debating whether a statute clearly waived protections for suits against states without magic words, as referenced in precedents like Kirtz and Kimel. Justices Sotomayor and Jackson pressed on intent and harmonizing laws. The next day, February 24, oral arguments addressed removal jurisdiction under 28 U.S.C. 1446, with counsel citing unanimous decisions like Lozano and Nutraceutical to argue against strict time limits overriding presumptions. A third argument that day covered cruise line liabilities and remedies under maritime statutes.

These developments highlight tensions over executive power, trade, and federalism, with decisions pending on the argued cases.

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