Uncertainty for Shippers as Supreme Court Strikes Down Some Trump Tariffs
The United States Supreme Court on Friday morning struck down Donald Trump’s use of emergency authorization to impose the sweeping reciprocal tariffs, which are a centerpiece of his economic policy. The long-awaited decision came on cases challenging presidential authority to impose the tariffs and creates a new level of uncertainty in trade policies as Trump vowed to continue his efforts, saying he would add 10 percent and then use other authorities to raise “more money.”
In a 6-to-3 ruling, the U.S. Supreme Court found that Trump had exceeded his constitutional authority when he launched the global tariffs in April 2025 on what he called “Liberation Day.” The Trump administration had invoked language from the 1977 International Emergency Economic Powers Act, claiming the president had the authority to impose tariffs due to the sustained trade deficits, which it said amounted to a national emergency.
Trump had frequently said on the campaign trail that “tariffs” was the most beautiful word in the English language. Speaking at an event on Thursday, he had still asserted, “I have the right to put tariffs on for national security purposes.” Speaking to the media after the decision, he called the decision “disgraceful” and said he was “ashamed” of the Supreme Court.
The opinion of the Supreme Court was written by Chief Justice John Roberts and said the power of taxes and tariffs had been given to the U.S. Congress by the authors of the U.S. Constitution. He said the president needed to be able to point to clear congressional authorization to impose unilateral tariffs, as he did in April. The Chief Justice wrote that Congress had not given that authority.
The decision made no mention of how or if the U.S. might have to reimburse tariffs collected to date or when the decision would become effective, ending the authority to collect the tariffs. Estimates are that the U.S. has already collected as much as $175 billion in tariffs. Trump said he would issue an order today reaffirming some of the tariffs imposed under other authorities. He also asserted he already has the right to charge even higher tariffs than are currently in place.
The court was ruling on cases brought by five small businesses that import goods and a challenge from 12 states. Lower courts, including the U.S. Court of Appeals, had previously found for the plaintiffs, rejecting the administration’s use of emergency powers. The U.S. Court of International Trade had also unanimously voted to block the tariffs.
The major shipping lines, importers, trade organizations, and others have all complained that tariffs were weighing down business and beginning to be reflected in the slowing of trade. Ports and container carriers, for example, have reported steep declines in volumes of imports and forecast that it would persist well into 2026.
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The biggest issue for shipping has been the uncertainty as trade policies were evolving and adjusted, often with last-minute delays in imposing some of the tariffs.
Trump had previously said that if the ruling went against the administration, they would find other ways to implement the policy, a point he reiterated in his remarks today. Experts point out that about a third of the tariffs imposed by the administration came from means other than the use of the IEEPA. Treasury Secretary Scott Bessent has said they would invoke other legal justifications to retain as many of the tariffs as possible. Among the methods mentioned by Trump were additional Section 301 investigations by the U.S. Trade Representative’s Office, but even he confirmed that those steps would take time, creating further uncertainty for shippers.
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