Supreme Court Voids Trump Emergency Tariffs

The U.S. Supreme Court on Feb. 20 struck down President Donald Trump’s sweeping global tariffs imposed under a federal emergency powers law, ruling 6-3 that the Constitution gives Congress — not the president — the power to levy import taxes.

Chief Justice John Roberts, writing for the majority, said the Constitution “very clearly” assigns taxing authority to Congress. “The Framers did not vest any part of the taxing power in the Executive Branch,” he wrote.

Justices Samuel Alito, Clarence Thomas, and Brett Kavanaugh dissented. Kavanaugh wrote that the tariffs “may or may not be wise policy” but were “clearly lawful” under the statute cited by the administration. He also warned that sorting out potential refunds of previously collected tariffs could be “a mess.”

The case centered on Trump’s use of the International Emergency Economic Powers Act of 1977 to impose what he called “reciprocal” tariffs on most countries in April 2025, after declaring trade deficits a national emergency. Previous presidents have used the law to impose sanctions, but Trump was the first to apply it to broad-based import taxes.

According to U.S. Treasury data, more than $133 billion had been collected under the emergency tariffs as of December.

The court did not address whether importers are entitled to refunds, leaving that issue to lower courts. Several companies have already filed claims.

What it means for North Carolina

For North Carolina, the ruling could ease pressure on manufacturers, farmers and retailers that rely on imported goods or export products abroad.

North Carolina is one of the nation’s top exporting states, with billions of dollars in annual shipments of pharmaceuticals, aerospace components, agricultural products and manufactured goods, according to data from the U.S. Department of Commerce’s International Trade Administration. Tariffs can raise costs for companies that depend on imported parts and can trigger retaliatory tariffs that affect exports.

Agriculture is particularly sensitive to trade disputes. North Carolina is a leading producer of pork, poultry and sweet potatoes. During previous tariff rounds, retaliatory duties from trading partners affected farm exports nationwide, prompting federal relief programs.

Manufacturers in the western part of the state, including furniture, automotive parts and advanced materials producers, have also cited higher input costs tied to tariffs in recent years. Retailers and small businesses importing consumer goods have said the duties increased prices and squeezed margins.

The Supreme Court’s decision could reduce those costs if the emergency tariffs are lifted permanently. However, the ruling does not prevent the administration from pursuing tariffs under other federal trade laws, which allow duties after investigations into unfair trade practices or national security concerns.

Those statutes typically require formal findings and may move more slowly than emergency declarations.

The Congressional Budget Office previously estimated the tariffs would have a roughly $3 trillion economic impact over the next decade. Economists have debated how much of the cost would ultimately be borne by consumers through higher prices.

For North Carolina consumers, any rollback of tariffs could help moderate prices on imported goods, though broader inflation trends are influenced by multiple factors.

Legal battles over refunds and the administration’s next trade steps are expected to continue, leaving some uncertainty for businesses, and state officials are watching closely.