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The US Supreme Court struck down President Donald Trump’s sweeping global tariffs, undercutting his signature economic policy and delivering his biggest legal defeat since he returned to the White House.
Voting 6-3, the court said Trump exceeded his authority by invoking a federal emergency-powers law to impose his “reciprocal” tariffs across the globe as well as targeted import taxes the administration says address fentanyl trafficking.
The justices didn’t address the extent to which importers are entitled to refunds, leaving it to a lower court to sort out those issues. If fully allowed, refunds could total as much as $170 billion — more than half the total revenue Trump’s tariffs have brought in.
Trump said at a press conference that he will reimpose some tariffs using alternative legal tools. The fall-back options tend to be either more cumbersome or more limited than the wide-ranging powers Trump asserted under the International Emergency Economic Powers Act.
Stocks rose on news of the decision given investors previously fretted tariffs would hurt the outlook for economic growth and company earnings. Treasuries extended declines with yields rising broadly and the rate on the benchmark 10-year note climbing to 4.10% as investors priced in the likelihood of lower tax revenues. A Bloomberg gauge of the dollar fell as much as 0.2% before erasing the drop.
Today's show features:
- Bloomberg News Supreme Court Reporter Greg Stohr on Supreme Court decision to block Trump’s tariffs
- Bloomberg White House Correspondent Kate Sullivan on latest from White House on tariff/Supreme Court news
- Olu Sonola, Head of US Economic Research at Fitch Ratings on today's Eco data
- Alan Eyre, Distinguished Diplomatic Fellow at Middle East Institute, on how Iran is viewing a potential strike by the US
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