The court ruled by a vote of 6 to 3. Justices Brett Kavanaugh, Clarence Thomas, and Samuel Alito were in the minority. The majority of the court concluded that Trump exceeded his authority by using the International Emergency Economic Powers Act (IEEPA) to impose "reciprocal" tariffs worldwide, as well as targeted tariffs justified by the fight against the illegal fentanyl trade.
The court noted the absence of mentions of "tariffs" in the text of the IEEPA, adding that in nearly half a century of the law's application, no president before Trump had used it to impose tariffs.
The Supreme Court did not determine the procedure for the refund of already paid tariffs, leaving this question to lower courts. It is expected that the total refunds could amount to up to $170 billion, exceeding half of all revenue from the imposed tariffs. Justice Kavanaugh warned of potential "chaos" in implementing this process.
The lawsuit against the tariffs was filed in April 2025 by educational toy manufacturers Learning Resources and hand2mind, which primarily import products from China. They stated that costs due to tariffs increased from $2.3 million to $100 million. A group of small businesses led by V.O.S. Selections also challenged the tariffs in court. In May 2025, lower courts ruled the tariffs illegal, and this decision was upheld by an appellate court in August.
In September, the Supreme Court consolidated these cases and expedited their review. Oral arguments took place on November 5, and by then, most justices expressed doubts about the administration's position.
After the court's verdict, the White House announced its intention to reinstate tariffs using other legal mechanisms. However, it is noted that alternative tools may be more complicated to implement and narrow the scope. The court's decision did not affect tariffs on steel, copper, and aluminum imposed under a different law - Section 232 of the Trade Expansion Act of 1962.
On the same day, President Trump announced the introduction of a new global tariff of 10% for a period of 150 days. He noted that the order would be enacted under Section 122 of the Trade Act of 1974 and would be in addition to the already existing tariffs.
Section 122 allows the president to impose tariffs of up to 15% for a period of up to 150 days in the presence of serious balance of payments issues and does not require investigations. At the same time, the administration initiated investigations under Section 301 of this law regarding "unfair trade practices" of other countries and companies.
"We have great alternatives. This can bring in more revenue. We will get more money and become stronger," Trump said.
It should be noted that the new tariffs are temporary, and the procedures under Section 301 may take several months.
Against this backdrop, the U.S. Department of Commerce released data on the trade deficit. In 2025, the goods trade deficit reached a record level of $1.2 trillion. When including services, this figure amounted to $901.5 billion - one of the highest in recent decades.
At the same time, exports of goods and services increased by 6.2% and reached a record $3.4 trillion, while imports rose by nearly 5% to $4.3 trillion.
