Explainer

What to Know About the Supreme Court Ruling Against Trump’s Tariffs

The US Supreme Court in Washington, DCPhotographer: Kent Nishimura/Bloomberg

In invoking what he claimed were virtually unlimited powers to impose tariffs under a 1977 emergency law, US President Donald Trump took unprecedented action. Now, the Supreme Court has determined that it was illegalBloomberg Terminal, too.

The ruling, covering the majority of tariffs imposed by Trump, renders those levies void. In so doing, it undercuts the president’s signature economic policy and delivers his biggest legal defeat since he returned to the White House. It also set the stage for what are likely to be complex legal fights over refunds of tariffs paid so far by US importers. The Supreme Court left it to lower courts to address the extent to which importers are entitled to refunds, which could total as much as $170 billionBloomberg Terminal — more than half the total revenue Trump’s tariffs have brought in.