Trump's global tariffs struck down by US Supreme Court

e.g. In a different path, 1 and 2 are the same, but things then diverge.

3) To recoup some of those tariff costs, the company sells the rights to any potential future tariff refunds. They recoup a portion of what they paid immediately but hand away the right to a full refund to another party, such as Cantor Fitzgerald. The seller might use this to reduce prices for their customers, but probably won't. They'll set prices according to what the market will support.

4) US government will refund all/most of that tax back to companies, like Cantor Fitzgerald, that bought the rights to tariff refunds.

5) Seller doesn't get any extra money back, so there's no money to refund to consumers.

IMPORTANT NOTE: Cantor Fitzgerald, while just one of the companies doing this, was formerly headed by Howard Lutnick and is currently owned and operated by his sons.

The importer CAN be the seller, but other times the importer is a middleman in the supply chain.

I think I'm kidding, but I'm not really sure anymore.

Seller sold forward contracts to recoup tariffs at a lower price and passed on the benefits to the consumers already. E.g. For every $1 seller paid as tariffs, seller sold a contract to someone for $0.25 saying if government ever refunds the buyer of the contract can keep it. The $0.25 already passed to consumers as benefits.

> Seller gets to keep the returned tax money as pure profit (no refund to customer)

Not to the specific customer but this benefits will now get passed to future customers as prices will be lowered than usual (lower than pre-tariff prices) due to competition.

Note that consumers who paid more were not necessarily paying the tariffs. Stores like Costco, Walmart increased prices across the board and socialized the impact of tariffs. Even if there was some mechanism to return tariff money to consumer, there is no way you could return it to someone who paid higher due to this socialized nature of price increase.

That topic will surely go back to the courts, kicking and screaming

And then not all tariff was absorbed by importer - some suppliers would have cut prices to compensate wholly or partly. We would never know as it is likely buried in various other discounts and contract terms not a line item that says "for tariff". Down the chain, others with margins could have done the same. That's probably why the inflation impact was less than scary scenarios painted by some economists.

(I know the answer is practically ’no’, but it does still seem to me that the bureaucracy and companies that went along with this obviously illegal operation bear some culpability...)

I can see a situation where the courts find that a general price increase is simply they - an offer to sell at a price the buyer accepted regardless of the seller's motivation to increase pricing. However a line item that very clearly states that a charge is for duties paid might be treated differently?

Very curious to see what the legal minds have to say in this scenario. In a way it may punish companies for doing what many to most consumers feel was the "right" thing to do - add a surcharge that can easily be removed if the situation changed in the future vs. using a general increase as a new price anchor.

Not according to the current administration: https://www.youtube.com/shorts/CODFD3j623E

According to them, China and others are paying the tariffs, so any refunds clearly have to go to China...

Seller may not reduce the price as well. Thus, continues to keep the raised price due to tariffs as free profit.

Though this is obviously a first so expect a billion lawsuits about this.

Elections have consequences.

Is there a reason to believe, or evidence, that it's not a mixture of the two?

edit: I want to highlight esseph's reply has a link to evidence that last year's tarrifs were passed off 90% to consumers, which is exactly the type of info I was looking for.

    Section 122: Implemented (effective Feb. 24, 2026) [1]

Amusingly, the new 10% tariff doesn't apply until Feb 24th, so you have a few days to avoid it. All this expires July 24th, because the law being invoked here has a time limit unless Congress extends it.

[1] https://www.whitehouse.gov/presidential-actions/2026/02/impo...

Actually they’re still doing it. I saw it not 2 minutes after seeing this post initially. The justifications for why they were “good, actually” has gotten increasingly vague though.

The difference is they have to go through administrative procedure, and are subject to more judicial review to ensure administrative process was followed. Even if its a fig leaf in this administrative, its a tad slower with higher judicial oversight.

What Trump wants to do is impose tariffs on a whim using emergency powers where administrative procedure laws don't apply.

So the hope here: we have at least more predictability / stability in the tariff regime. But tariffs aren't going away

it's about if the executive can impose them

Tariffs in general have not been touched at all, those that Congress wishes to pass. This is a ruling that the President cannot use the 1970s act to be a one-person economic warfare machine to the entire world when he doesn't like something.

Tariffs are the most expensive way to try to onshore manufacturing. The cost per "job created" is astronomical usually. They incentivize corruption and black markets.

Even regular old subsidies are usually easier, cheaper, and less problematic

Trump's usage of tariffs is pretty damn dumb.

Full stop. It really is only about whether or not the president could do it.

That's all.

When the US President commits crimes as the US President, he has absolute immunity from prosecution (otherwise, he might not be emboldened to break the law) so there is no judicial recourse, but the US Congress can still see the illegal activity and impeach and remove him from office to stop the execution of illegal activity. As our representatives within the US Government, they are responsible to us to enact our legislative outcomes. It appears they have determined that the illegal activity is what we wanted, or there would be articles of impeachment for these illegal acts.

The legislative branch can of course deliberately impose tariffs at any time for the reasons you listed.

It's a 6-3 decision. Not close.

Here's the actual decision:

The judgment of the United States Court of Appeals for the Federal Circuit in case No. 25–250 is affirmed. The judgment of the United States District Court for the District of Columbia in case No. 24–1287 is vacated, and the case is remanded with instructions to dismiss for lack of jurisdiction.

So what does that mean in terms of action?

It means this decision [1] is now live. The vacated decision was a stay, and that's now dead.

So the live decision is now: We affirm the CIT’s holding that the Trafficking and Reciprocal Tariffs imposed by the Challenged Executive Orders exceed the authority delegated to the President by IEEPA’s text. We also affirm the CIT’s grant of declaratory relief that the orders are “invalid as contrary to law.”

"CIT" is the Court of International Trade. Their judgement [2], which was unanimous, is now live. It reads:

"The court holds for the foregoing reasons that IEEPA does not authorize any of the Worldwide, Retaliatory, or Trafficking Tariff Orders. The Worldwide and Retaliatory Tariff Orders exceed any authority granted to the President by IEEPA to regulate importation by means of tariffs. The Trafficking Tariffs fail because they do not deal with the threats set forth in those orders. This conclusion entitles Plaintiffs to judgment as a matter of law; as the court further finds no genuine dispute as to any material fact, summary judgment will enter against the United States. See USCIT R. 56. The challenged Tariff Orders will be vacated and their operation permanently enjoined."

So that last line is the current state: "The challenged Tariff Orders will be vacated and their operation permanently enjoined." Immediately, it appears.

A useful question for companies owed a refund is whether they can use their credit against the United States for other debts to the United States, including taxes.

[1] https://www.cafc.uscourts.gov/opinions-orders/25-1812.OPINIO...

[2] https://storage.courtlistener.com/recap/gov.uscourts.cit.170...

Zing! Surprisingly spicy writing for such a gravely serious body.

Yes, legislating can be hard and take time. And, yes, it can be tempting to bypass Congress when some pressing problem arises. But the deliberative nature of the legislative process was the whole point of its design. ... But if history is any guide, the tables will turn and the day will come when those disappointed by today’s result will appreciate the legislative process for the bulwark of liberty it is.

When I came to the opinion from Jackson, J., I found it extremely compelling. He says this:

... But some of TWEA’s sections delegating this authority had lapsed, and “there [was] doubt as to the effectiveness of other sections.” Accordingly, Congress amended TWEA in 1941, adding the subsection that includes the “regulate ... importation” language on which the President relies today. The Reports explained Congress’s primary purpose for the 1941 amendment: shoring up the President’s ability to control foreign-owned property by maintaining and strengthening the “existing system of foreign property control (commonly known as freezing control).”

When Congress enacted IEEPA in 1977, limiting the circumstances under which the President could exercise his emergency authorities, it kept the “regulate ... importation” language from TWEA. The other two relevant pieces of legislative history—the Senate and House Reports that accompanied IEEPA—demonstrate that Congress’s intent regarding the scope of this statutory language remained the same. As the Senate Report explained, Congress’s sole objective for the “regulate ... importation” subsection was to grant the President the emergency authority “to control or freeze property transactions where a foreign interest is involved.” The House Report likewise described IEEPA as empowering the President to “regulate or freeze any property in which any foreign country or a national thereof has any interest.”

However, then I read Kavanaugh, J. who writes the following:

In 1971, President Nixon imposed 10 percent tariffs on almost all foreign imports. He levied the tariffs under IEEPA’s predecessor statute, the Trading with the Enemy Act (TWEA), which similarly authorized the President to “regulate ... importation.” The Nixon tariffs were upheld in court.

When IEEPA was enacted in 1977 in the wake of the Nixon and Ford tariffs and the Algonquin decision, Congress and the public plainly would have understood that the power to “regulate ... importation” included tariffs. If Congress wanted to exclude tariffs from IEEPA, it surely would not have enacted the same broad “regulate ... importation” language that had just been used to justify major American tariffs on foreign imports.

And I also find this compelling.

To add onto this, Roberts, C. J. says: IEEPA’s grant of authority to “regulate ... importation” falls short. IEEPA contains no reference to tariffs or duties. The Government points to no statute in which Congress used the word “regulate” to authorize taxation. And until now no President has read IEEPA to confer such power.

This seems directly contradictory to Kavanaugh, J.'s dissent! Kavanaugh, J. claims that Nixon used the word “regulate” to impose tarrifs. And apparently the word isn't just in some random other statute — Nixon did so from TWEA, the predecessor of IEEPA: when Congress enacted IEEPA in 1977 it kept the “regulate ... importation” language from TWEA. (from Jackson, J.) So the point that no President has read IEEPA to confer such power seems pretty weak, when Nixon apparently did so from TWEA.

I have no conclusion from this, but IMO both Jackson, J. and Kavanaugh, J. have pretty strong points in opposing directions.

Additionally, the law in this case isn’t ill defined whatsoever. Alito, Thomas, and to a lesser extent Kavanaugh are just partisan hacks. For many years I wanted to believe they had a consistent and defensible legal viewpoint, even if I thought it was misguided. However the past six years have destroyed that notion. They’re barely even trying to justify themselves in most of these rulings; and via the shadow docket frequently deny us even that barest explanation.

The fact that the administration of tariffs is so much better defined than really anything else shouldn’t be surprising because tariffs is the proximate cause of the Revolutionary war.

It’s embarrassing that the 3 justices put their partisanship ahead of the clear language of the constitution and explicitly stated intentions of the founders.

'can the President unilaterally impose tariffs on any country he wants anytime he wants'

No, he can't impost tariffs on any country. He can only impose tariffs on American companies willing to import from any country.

That is not how the Supreme Court works. SCOTUS is a political body. Justices do one thing: cast votes. For any reason.

If they write an opinion it is merely their post hoc justification for their vote. Otherwise they do not have to explain anything. And when they do write an opinion it does not necessarily reflect the real reason for the way they voted.

Edit: Not sure why anyone is downvoting this comment. I was a trial attorney for 40+ years. If you believe what I posted is legally inaccurate, then provide a comment. But downvoting without explaining is ... just ... I don't know ... cowardly?

> The Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises

(which it does, and expounds upon)

Make stupid laws, win stupid prizes.

It's almost like the legal system is designed so that you can get away with murder if you can afford enough lawyers.

- https://www.newsweek.com/trump-doj-handling-pam-bondi-brothe...

- https://abcnews.com/US/doj-drops-charges-client-ag-pam-bondi...

For what it’s worth, I’ve personally been doing this. Not in meaningful dollar amounts. And largely to help regional businesses stay afloat. But I paid their tariffs and bought, in return, a limited power of attorney and claim to any refunds.

Like his peanut farm would unduly sway government peanut policy.

Seems more likely the administration orders everyone to ignore the court.

[0] https://www.theguardian.com/us-news/2026/jan/30/new-epstein-...

https://archive.is/W6Gqy

What a profitable time for the Lutnicks, who are of course already fabulously wealthy. Our system really does reward the best people.

But I guess this is not very surprising. I am sure every friend and family member of Trump administration people made trades leading all those tariff announcements over the last year, while the rest of us got rocked by the chaos in the stock market.

Trump just gave himself a $10 billion dollar slush fund from taxpayers. Who stopped him? No one. This amount of money will buy you one great den.

Noem wants luxury jets from the taxpayer.

So. Much. Winning.

That's more sadistic than I had guessed.

------ re: below due to throttling ----------

Lutnicks profit requires some 2nd order thinking. How Trump et al might profit off of import/export insider operations also requires some 2nd order thinking. My apologies for not spelling it out, although it should not take much imagination.

Always seems to be in the right place and the right time

Like with refunds, this is a mess of Trump's own making, and now we get to figure it out.

The description of some of those emergencies is comedic: "Declared a bank holiday from March 6 through March 9, 1933, using the Trading with the Enemy Act of 1917 as a legal basis."

[1] - https://en.wikipedia.org/wiki/List_of_national_emergencies_i...

This is something FDR did heavily in the 1930s to expand his own power and bully congress into passing the New Deal. https://www.ebsco.com/research-starters/history/purge-1938 He also used legally questionable executive orders like crazy.

...raise taxes

The state of exception is the true test of sovereignty, and powers that crave sovereignty therefore seek out states of exception. The PATRIOT act created new institutions and authorities like the TSA. Just a few years ago local health departments were making business-shuttering decisions that ruined life for a lot of people over the common cold. Ukrainian war funding provides the EU with opportunities for exports and new experiments in joint funding (Eurobonds). Emergencies and exceptions are how power grows, so everything can become an emergency if you look at it in the right way.

Actual event may not have occurred, but DHL flat fee is real.

Furious about the defeat, Trump said he will impose a global 10% tariff as an alternative while pressing his trade policies by other means. The new tariffs would come under a law that restricts them to 150 days.

Don't you americans have some kind of mechanism for removing a president from office when the trust is no longer there? I remember hearing a lot about it during the Clinton era in the 90s.

1. The EU would face higher tariffs on their exports to the USA. Now mostly struck down

2. The EU would not retaliate with tariffs of its own. Not really a big deal since the only US export to the EU that's worth worrying about are digital services, and those aren't subject to tariffs anyways.

3. The EU promised to buy lots of LNG and make investments in the USA to the tune of hundreds of billions of dollars. This was a bald-faced lie on the part of the EU negotiators. Even if the EU wanted to actually do this, they have no power or mechanism to make member states and companies within those member states buy more LNG or make more investments in the USA. This was just an empty promise.

___

So if the tariffs are struck down, we're more or less back to where we started.

Parliament froze it when Trump started threatening Greenland.

https://www.bbc.com/news/articles/c86yjnw4x49o

I doubt Trump's seriously seeking a nuclear deal as he (in)famously withdrew from the deal established by the Obama administration [1].

[1] https://en.wikipedia.org/wiki/United_States_withdrawal_from_...

A nuclear Iran would lead to a nuclear KSA, Turkiye, UAE, Egypt, Qatar, etc and would make the Middle East more unstable.

We don't need to put boots on the ground though. The reason why we had boots in Afghanistan and Iraq which led to it's unpopularity was due to our moral commitment to nation-building in the 1990s-2000s (especially after Yugoslavia). Americans no longer feel that moral compulsion.

If Iran shatters like Libya, the problem is solved and KSA, UAE, Qatar, Turkiye, Azerbaijan, Pakistan, Russia, China, and India can fight over the carcass just like how ASEAN, China, Russia, and India are doing in now collapsed Myanmar (which had similar ambitions in the 2000s); how the Gulf, Med states, and Russia are meddling in Libya; and how the Gulf, Turkiye, Russia, China, and India are meddling in the Horn of Africa (Ethiopia, Sudan, Somalia).

This is why North Korea prioritized nuclear weapons - in order to gain strategic autonomy from the US and China [0], especially because China has constantly offered to forcibly denuclearize North Korea as a token to SK and Japan for a China-SK-Japan FTA [1]

Edit: can't reply

> How many more years will it remain inevitable, do you think?

As long as Iranian leadership remain committed to building a nuclear program.

Thus Iran either completely hands off it's nuclear program to the US or the EU, or it shatters.

The former is not happening because the key veto players in Iran (the clerics, the Bonyads, the IRGC, the Army, and regime-aligned oligarchs) are profiting from sanctions and substituting US/EU relations with Russia and China, and have an incentive to have a nuclear weapon in order to solidify their perpetual control in the same manner that North Korea did.

That only leaves the latter. The same thing happened to Libya and Myanmar.

The only reason the Obama administration went with the JCPOA was because the EU, Russia, and China lobbied the Obama admin that they could prevent Iran from nuclearizing. China+Russia are now indifferent to Iranian nuclear ambitions due to ONG (China) and technology (Russia) dependencies, and the EU does not have the power projection capacity nor the economic linkages to stop Iran.

[0] - https://www.cfr.org/backgrounders/six-party-talks-north-kore...

[1] - https://english.kyodonews.net/articles/-/47844?device=smartp...

Tariffs are totally a reasonable tool for protecting national security interests or leveling the playing field for the American worker. Unfortunately none of that was done in a coherent or legible way.

With all the global fallout and nothing to show for it I'm really not sure I could have come up with a better way to sabotage the United States.

And we know in practice that Trump TACOs out rather than pick real fights with established powers. Markets don't like it when regulatory agencies go rogue vs. the rule of law. They'll just shift gears to something else.

For sure. Question is what would be enough to regain trust? I don't really see it happening

Y'all have proven how worthless that piece of paper is.

I don't know about trust but the constitution isn't what enabled this type of behavior, it's the legislature. They've been abdicating their duties to executive controlled bodies (FCC, FDA, FTC, EPA, etc.) and allowing the president to rule through executive action unchallenged. They could have stopped these tariffs on day one. SCOTUS isn't supposed to be reactionary, congress is.

The constitution has all the mechanisms in place to control the president, they just aren't being used by the legislature.

It's a tricky problem that has a number of proposed solutions. I'm not going to act like it's a silver bullet but I think open primaries in federal elections would go a _long_ way towards normalizing (in the scientific meaning) the legislature and allowing people who want to do the job, rather than grandstand, into the offices.

Even if part of the tariffs are rolled back, we may see other ones remain. And I bet they will not make it easy for people to get their money back, and force them into courts. Not that it matters. If people get their money back, it will effectively increase the national debt which hurts citizens anyways.

And let’s not forget the long-term damage of hurting all of the relationships America had with other countries. If Trump wanted to use tariffs as a tool for emergency purposes, he should have just taken action against China and made a case around that (pointing to Taiwan, IP theft, cyber attacks, etc). Instead he implemented blanket tariffs on the whole world, including close allies like Canada.

In the end, my guess is China and India gained from this saga. And the Trump administration’s family and friends gained by trading ahead of every tariff announcement. Americans lost.

The food industries were seeing record profits at the same time of massive inflation, they were maximizing prices to see how much they could grow their wealth, while trying to minimize costs, decreasing quality and just absolutely abhorrent behavior all around.

I'm all for capitalism, but I strongly feel that the limitations granted to corporations by govt should come as part of a social contract that has largely been ignored completely. We should curtail a lot of the limitations granted and actually hold executives responsible for their decisions. We should also establish that "shareholder value" is not the only focus that companies should have. A corporation is not a person, that a corporation exists is fine, that they've been shielded from responsibility altogether in that limited liability now means you can literally destroy towns and executives and boards face no consequences is deplorable.

Governments should be limited, by extension the shields govt grants to corporations should similarly be limited. When the US constitution was written most corporations were formed around civil projects, then disbanded. Most companies were sole proprietorships or small partnerships. I think we need to get closer back to these types of arrangements.

Congress is already completely in Trump's pocket. By doing it through Congress, Trump loses most of his bribery and bullying opportunities.

The new 10% will be effect I've from tuesday and he expects all deals he made with several countries to just continue without protest.

https://www.msn.com/en-us/money/markets/trump-imposes-10-tar...

A typical pattern is the appeals court (of which scotus is one) clarifies the legal issues and send the case back to the trial court to clean up and issue specific orders.

https://www.cnbc.com/2025/09/02/cnbc-daily-open-trump-admini...

Even if you're still making the same money per unit, tarriffs mean you sell fewer units. So many less that it's an existential threat to many businesses.

In the end, the people who bought products that paid more won't get it back... and who will receive the difference is the middle-men who will just pocket the difference profiting from both ends.

No adults in the room to stop him.

That wouldn't have given the opportunity for SCOTUS's financial backers to build up their profits first https://news.ycombinator.com/item?id=47089443

The process takes time.

1. https://www.cnbc.com/2025/05/29/court-strikes-down-trump-rec...

2. https://www.cnbc.com/2025/08/29/trump-trade-tariffs-appeals-...

If we lived in a functional society, one might expect that tarriffs could be refunded through the normal income tax refund process hinged upon supplying recipts of tarriffs paid. I do not expect this to happen in the USA.

- $TRUMP meme coin, down 87% from ATH

- $MELANIA meme coin, down 98% from ATH

- $WLFI, down 50% from ATH, with 4 Trump co-founders

The first two coins were actually hyped up so hard at launch that they drained liquidity from most of the crypto market because of people dumping everything to buy in

He probably didn't say it either, its first appearance is in an 1860s book by Horace Greeley.

The idea that the EU is high-tariff, while popular on the internet, is simply not supported by the facts.

> being the devil when the US implements them, and being double-plus-good when the European Union implements them (or China or South America).

You can also flip the argument and say that it is "double-plus-good" when USD is reserve currency but is the devil when Euro, Yen, Yuan, Rubles, Rupee et all want to be reserve currency too. Why does US admin go bananas when the topic of a BRICS currency is brought up?

Developed countries have levers. Developing countries have levers too. That's how balance has been maintained all these years since the World order was established post-WW2. Now if US wants to undo this World order (which it itself help setup) and wants to behave like a developing country, then developing countries will encroach on areas US holds dear to it: USD as reserve currency, cross-border transactions through SWIFT, imposing sanctions etc. Remember that it is not US alone that holds all the cards. Everyone else has their own cards as well.

You can be for tariffs all you want, I'm not here to argue their efficacy. But you absolutely cannot with any intellectual honesty still be on the fence about whether he abused his power given this ruling.

It is not "flip flopping policy" to break the bounds of your Constitutional power and be shut down by one of the branches meant to check you.

Perhaps this is an overdue wakeup call, and a freak out is in order regarding this reality but unconstitutional tariffs alone were never going to solve this problem.

> I'm for the tarrifs

What makes you think they are good?

American citizens and American importers are not foreigner countries.

Don’t propagate or fall for trumps repeated blatant LIE that foreign countries pay tariffs.

They are direct taxes on Americans and American importers, the exporter does not pay it.

Allowing Trump to trash the US economy is one thing, but even a Republican congress may be a little unwilling to actively _do it themselves_. Trump won't last forever, and they need to get re-elected.