Supreme Court strikes down Trump's sweeping tariffs, upending central plank of economic agenda
Washington (AP): The Supreme Court struck down President Donald Trump's far-reaching global tariffs on Friday, handing him a significant loss on an issue crucial to his economic agenda.
The 6-3 decision centres on tariffs imposed under an emergency powers law, including the sweeping “reciprocal” tariffs he levied on nearly every other country.
It's the first major piece of Trump's broad agenda to come squarely before the nation's highest court, which he helped shape with the appointments of three conservative jurists in his first term.
The majority found that the Constitution “very clearly” gives Congress the power to impose taxes, which include tariffs. “The Framers did not vest any part of the taxing power in the Executive Branch,” Chief Justice John Roberts wrote.
Justices Samuel Alito, Clarence Thomas and Brett Kavanaugh dissented.
“The tariffs at issue here may or may not be wise policy. But as a matter of text, history, and precedent, they are clearly lawful,” Kavanaugh wrote in the dissent.
The majority did not address whether companies could get refunded for the billions they have collectively paid in tariffs. Many companies, including the big-box warehouse chain Costco, have already lined up for refunds in court, and Kavanaugh noted the process could be complicated.
“The Court says nothing today about whether, and if so how, the Government should go about returning the billions of dollars that it has collected from importers. But that process is likely to be a mess,' as was acknowledged at oral argument,” he wrote.
The tariffs decision doesn't stop Trump from imposing duties under other laws. While those have more limitations on the speed and severity of Trump's actions, top administration officials have said they expect to keep the tariff framework in place under other authorities.
The Supreme Court ruling comes despite a series of short-term wins on the court's emergency docket that have allowed Trump to push ahead with extraordinary flexes of executive power on issues ranging from high-profile firings to major federal funding cuts.
The Republican president has been vocal about the case, calling it one of the most important in US history and saying a ruling against him would be an economic body blow to the country. But legal opposition crossed the political spectrum, including libertarian and pro-business groups that are typically aligned with the GOP. Polling has found tariffs aren't broadly popular with the public, amid wider voter concern about affordability.
The Constitution gives Congress the power to levy tariffs. But the Trump administration argued that a 1977 law allowing the president to regulate importation during emergencies also allows him to set tariffs. Other presidents have used the law dozens of times, often to impose sanctions, but Trump was the first president to invoke it for import taxes.
Trump set what he called "reciprocal" tariffs on most countries in April 2025 to address trade deficits that he declared a national emergency. Those came after he imposed duties on Canada, China and Mexico, ostensibly to address a drug trafficking emergency.
A series of lawsuits followed, including a case from a dozen largely Democratic-leaning states and others from small businesses selling everything from plumbing supplies to educational toys to women's cycling apparel.
The challengers argued the emergency powers law doesn't even mention tariffs and Trump's use of it fails several legal tests, including one that doomed then-President Joe Biden's USD 500 billion student loan forgiveness program.
The economic impact of Trump's tariffs has been estimated at some USD 3 trillion over the next decade, according to the Congressional Budget Office. The Treasury has collected more than USD 133 billion from the import taxes the president has imposed under the emergency powers law, federal data from December shows.
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Trump warns he's considering limited strikes as Iranian diplomat says proposed deal is imminent
Washington (AP): President Donald Trump warned on Friday that limited strikes against Iran are possible even as the country's top diplomat said Tehran expects to have a proposed deal ready in the next few days following nuclear talks with the United States.
In response to a reporter's question on whether the US could take limited military action as the countries negotiate, Trump said, “I guess I can say I am considering that.” Earlier, Iranian Foreign Minister Abbas Araghchi said in a TV interview that his country was planning to finalise a draft deal in “the next two to three days” to then send to Washington.
“I don't think it takes long, perhaps, in a matter of a week or so, we can start real, serious negotiations on the text and come to a conclusion,” Araghchi said on MSNOW's “Morning Joe” show.
The tensions between the longtime adversaries have ramped up as the Trump administration pushes for concessions from Iran and has built up the largest US military presence in the Middle East in decades, with more warships and aircraft on the way. Both countries have signalled that they are prepared for war if talks on Tehran's nuclear programme fizzle out.
“We are prepared for war, and we are prepared for peace,” Araghchi said Friday.
Trump said a day earlier that he believes 10 to 15 days is “enough time” for Iran to reach a deal following recent rounds of indirect negotiations, including this week in Geneva, that made little visible progress. But the talks have been deadlocked for years, and Iran has refused to discuss wider US and Israeli demands that it scale back its missile program and sever ties to armed groups.
Araghchi also said Friday that his American counterparts have not asked for zero enrichment of uranium as part of the latest round of talks, which is in contradiction to what US officials have said.
"What we are now talking about is how to make sure that Iran's nuclear programme, including enrichment, is peaceful and will remain peaceful forever," he said.
He added that in return Iran will implement some confidence-building measures in exchange for relief on economic sanctions.
In response to Araghchi's claim, a White House official said Trump has been clear that Iran cannot have nuclear weapons or the capacity to build them and that it cannot enrich uranium. The official wasn't authorised to comment publicly and spoke on condition of anonymity.
Tehran has long insisted that any negotiations should only focus on its nuclear programme and that it hasn't been enriching uranium since US and Israeli strikes last June on Iranian nuclear sites. Trump said at the time that the strikes had “obliterated” Iran's nuclear sites, but the exact damage is unknown as Tehran has barred international inspectors.
Iran has also insisted that its nuclear programme is peaceful. The US and others suspect it is aimed at eventually developing weapons.
