Today, the U.S. Supreme Court issued a major decision in Learning Resources, Inc. v. Trump, holding in a 6–3 ruling that the International Emergency Economic Powers Act (IEEPA) does not authorize the President to impose tariffs under a declared national emergency.
In its opinion, the Court reaffirmed a core constitutional principle: only Congress has the authority to “lay and collect Taxes, Duties, Imposts and Excises,” including tariffs. The justices explained that while IEEPA gives the Executive Branch broad authority to regulate certain economic transactions in emergencies, it contains no clear grant of tariff-making power. The majority emphasized that ambiguous statutory language cannot be read to confer such significant economic authority without explicit congressional authorization.
This ruling invalidates the sweeping tariffs the Trump administration imposed under IEEPA in 2025 that had targeted imports from countries including China, Mexico, and Canada!