SCOTUS strikes down Trump tariffs under IEEPA; Neal Katyal leads case
SCOTUS strikes down Trump tariffs under IEEPA; Neal Katyal leads case
The Supreme Court rules IEEPA cannot authorize sweeping tariffs, delivering a setback to Trump and highlighting Neal Katyal's pivotal involvement.
The Supreme Court delivered a major setback to the Trump administration, ruling in a 6-3 decision that the International Emergency Economic Powers Act (IEEPA) does not authorize the president to impose sweeping reciprocal tariffs. The ruling curtails a policy that had aimed to reshape international trade during national emergencies.
At the center of the case is Neal Katyal, an Indian-origin American lawyer known for arguing before the Supreme Court in more than 50 cases and for his roles as a former Acting Solicitor General and a Georgetown national security law professor. Katyal, who is a partner at Millbank LLP, was highlighted for his procedural and legal arguments against the broad use of tariffs under emergency powers.
IEEPA authorizes the president to regulate or prohibit international transactions during declared emergencies, but the justices concluded that this authority does not extend to imposing sweeping tariffs as a tool of trade policy. The decision underscores limits on executive power in the realm of international commerce and national emergencies.
Countries affected by IEEPA tariffs included Canada, China, Mexico, India, Brazil and dozens of others, underscoring the global reach of the policy now constrained by the court’s ruling. The decision signals a potential recalibration of how emergency powers may be deployed in future trade disputes, with implications for policymakers, markets and international partners.
