The Court noted that Article I, Section 8, of the US Constitution specifies that “The Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises.” The Framers recognized the unique importance of this taxing power—a power which “very clear[ly]” includes the power to impose tariffs. And they gave Congress “alone . . . access to the pockets of the people.” The Framers did not vest any part of the taxing power in the Executive Branch. The Government thus concedes that the President enjoys no inherent authority to impose tariffs during peacetime. It instead relies exclusively on IEEPA to defend the challenged tariffs. It reads the words “regulate” and “importation” to effect a sweeping delegation of Congress’s power to set tariff policy—authorizing the President to impose tariffs of unlimited amount and duration, on any product from any country.
At page 46., the Court's judgement reads:"For those who think it important for the Nation to impose more tariffs, I understand that today’s decision will be dis appointing. All I can offer them is that most major decisions affecting the rights and responsibilities of the American people (including the duty to pay taxes and tariffs) are funneled through the legislative process for a reason. 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. Through that process, the Nation can tap the combined wisdom of the people’s elected representatives, not just that of one faction or man. There, deliberation tempers impulse, and compromise hammers disagreements into workable solutions. And because laws must earn such broad support to survive the legislative process, they tend to endure, allowing ordinary people to plan their lives in ways they cannot when the rules shift from day to day. In all, the legislative process helps ensure each of us has a stake in the laws that govern us and in the Nation’s future. For some today, the weight of those virtues is apparent. For others, it may not seem so obvious. 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."
The Court's decision strikes down all the tariffs imposed under the statue, including the “Liberation Day” tariffs. It returns the case to United States Court of International Trade to address the issue of refunds. It is estimated that more than $160 billion of tariffs have been illegally collected under IEEPA Removal of the IEEPA tariffs. President Trump had used IEEPA to impose most of his new tariffs. This was the first time the emergency law was used to do so.
On May 28, 2025, a panel of judges at the US International Court of Trade had unanimously ruled that the IEEPA tariffs were illegal. This decision was upheld by the US Court of Appeals on August 29, 2025. The tariffs remain in effect while the administration prepares its appeal to the Supreme Court.
On February 21, 2026, Press Information Bureau issued a statement of Indian Commerce and Industry Ministry wherein it said that it has noted the US Supreme Court's judgement on tariffs. It is studying all these developments for their implications. The Ministry said that US President Donald Trump has also addressed a press conference in that regard. It added that some steps have been announced by the US Administration.
Post a Comment