
The Supreme Court’s 6-3 ruling striking down a significant portion of the Trump administration's tariffs marks a major shift in federal trade authority. The decision centers on the International Emergency Economic Powers Act (IEEPA), which the court ruled does not grant the executive branch unilateral power to impose tariffs without explicit congressional authorization. Trade lawyer Ted Murphy explains that while the administration argued these tariffs were necessary for national emergencies like fentanyl imports, the court reaffirmed that the Constitution bestows taxing power on Congress. Consequently, the administration is pivoting to Section 122 of the Trade Act to maintain trade barriers under more constrained legal frameworks. This legal shift leaves over $100 billion in previously collected tariffs in limbo, prompting small business owners like Daniel Harberger of Woof to seek refunds to reinvest in domestic growth and product development. Despite the ruling, the immediate future remains defined by litigation and the transition to alternative legal justifications for existing trade protections.
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