The U.S. Supreme Court on Friday invalidated a broad set of tariffs imposed during President Donald J. Trump’s second term, ruling that the White House lacked legal authority to enact the duties under a federal emergency-powers law.
In a 6-3 decision, the court said the International Emergency Economic Powers Act does not give the president the power to impose tariffs. Chief Justice John Roberts wrote that “had Congress intended to convey the distinct and extraordinary power to impose tariffs, it would have done so expressly.”
The ruling voids tariffs tied to national emergency declarations related to illegal drug trafficking and trade deficits. The measures included duties on imports from Canada, Mexico and China, along with wider reciprocal tariffs affecting numerous trading partners.
According to the Wall Street Journal, the tariffs at issue represented a large majority of Trump’s second-term duties and were projected to raise about $1.5 trillion over a decade, citing Tax Foundation estimates. The Journal reported that three conservative justices — Clarence Thomas, Samuel Alito and Brett Kavanaugh — dissented.
The decision could carry notable implications for Connecticut companies that have cited tariffs as a financial and operational pressure.
Danbury-based Ethan Allen Interiors Inc. said this month that tariffs weighed on earnings and contributed to workforce reductions. The furniture maker reported fiscal second-quarter net income of $11.7 million, down 21.7% from a year earlier, pointing to higher import costs and softer demand.
The company cited a 25% duty on certain upholstered wood products from Mexico, along with higher tariffs on case goods, fabrics and home accents sourced from Asia.
Stanley Black & Decker, the New Britain-based toolmaker, has also pointed to tariffs as a key factor affecting its supply chain and pricing. The company said it is continuing to shift manufacturing out of China, projecting that by year-end less than 5% of its U.S.-sold products will be made there, down from roughly 20% before recent tariff changes.
Businesses and states challenged the tariffs in court, leading to multiple rulings against the administration before the cases reached the Supreme Court.
The decision limits the use of emergency powers in trade policy and reinforces Congress’ primary authority over tariffs.
