NEW YORK (AP) 鈥� The Supreme Court dealt President Donald Trump a bruising loss on a cornerstone of his economic policy, he imposed on nearly every country.
In its 6-3 opinion on Friday, the court ruled Trump鈥檚 attempt to use an emergency powers law to enact the levies was not valid.
Two of the three justices appointed by Trump joined the majority in striking down the first major piece of his second-term agenda to come before them.
Here鈥檚 what to know:
What the court ruled
Trump relied on the 1977 International Emergency Economic Powers Act, or IEEPA, as justification for a historic barrage of tariffs, even though that law contains no mention of tariffs. IEEPA, which allows the president to seize assets and block transactions during a national emergency, was first used during the Iran hostage crisis. It has since been invoked for a range of global unrest, from the 9/11 attacks to the Syrian civil war.
The president said the U.S. trade deficit was so serious, it too qualified as an emergency, a contention the high court dismissed.
鈥淭he fact that no President has ever found such power in IEEPA is strong evidence that it does not exist,鈥� Chief Justice John Roberts wrote for the majority.
In their opinion, the justices noted the Constitution 鈥渧ery clearly鈥� gives Congress, not the president, the power to impose taxes, including tariffs.
Justices Samuel Alito, Clarence Thomas and Brett Kavanaugh dissented.
鈥淭he tariffs at issue here may or may not be wise policy. But as a matter of text, history, and precedent, they are clearly lawful,鈥� Kavanaugh wrote.
Refunds could be a 鈥榤ess鈥�
The Treasury had collected more than $133 billion from the import taxes the president has imposed under the emergency powers law as of December, shows.
But the Supreme Court did not address whether the companies and individuals who paid those tariffs could be refunded. Many companies, including the big-box warehouse chain Costco, have already lined up to demand refunds in lower courts. But even if some system for refunds is eventually set up, ordinary Americans may not see relief.
Kavanaugh, who dissented from Friday鈥檚 decision, noted the process could be complicated.
鈥淭he 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 鈥榤ess,鈥� as was acknowledged at oral argument,鈥� Kavanaugh wrote.
Trump said the court鈥檚 failure to address refunds meant it would result in years of litigation.
The average person, who didn鈥檛 directly buy products from overseas but felt the weight of tariffs through higher prices on some products, is unlikely to share in any prospective windfall.
Refunds, should they happen, would likely go primarily to companies that paid the levies.
What tariffs are affected
Early last year, Trump cited IEEPA to impose tariffs on America鈥檚 three biggest trading partners: Mexico, Canada and China. To justify the levies, he declared a national emergency over like fentanyl and the chemicals made to use it.
Then in April, on what Trump billed as 鈥淟iberation Day,鈥� he imposed 鈥渞eciprocal鈥� tariffs of up to 50% on goods from dozens of countries 鈥� and a baseline 10% tariff on just about everyone else, also using IEEPA as justification.
Trump also used IEEPA to slap steep import taxes on Brazilian imports, citing the country鈥檚 criminal prosecution of , and on India, for the country鈥檚 purchases of .
Many of the tariffs Trump has imposed under IEEPA have seen a roller coaster of activity after their implementation 鈥� taken away, increased and reintroduced at various times in the past year.
While the Supreme Court鈥檚 decision upends many of the levies, others imposed by Trump relied on other justifications and are not affected.
Most of America鈥檚 trading partners still face steep tariffs on specific sectors, including on , , copper, lumber, , bathroom vanities and upholstered furniture.
Trump decries decision, businesses celebrate it
Trump was unsparing in his criticism of the decision, calling those voting with the majority 鈥渦npatriotic鈥� and 鈥渄isloyal,鈥� and a 鈥渄isgrace to our nation.鈥�
鈥淔oreign countries that have been ripping us off for years are ecstatic. They’re so happy. And they’re dancing in the streets,鈥� Trump said. 鈥淏ut they won’t be dancing for long.鈥�
Trump promised to press forward with his agenda, saying 鈥渢here are methods, practices, statutes and authorities鈥� that 鈥渁re even stronger than the IEEPA tariffs.鈥� Among Trump’s vows Friday was to sign an executive order to impose a new 10% global tariff to make up for the overturned levies.
That new tax would be implemented under a federal law that limits such tariffs to 150 days. If Trump can convince Congress to go along with the plan, though, they could be extended legislatively.
While Trump bemoaned the decision, many opponents of tariffs cheered it.
We Pay the Tariffs, a group of small businesses that had fought the implementation of import taxes, called the decision a 鈥渢remendous victory鈥� for companies that had been hurt by the tariffs.
鈥淭hey鈥檝e taken out loans just to keep their doors open,鈥� the group’s leader, Dan Anthony, said. 鈥淭hey鈥檝e frozen hiring, canceled expansion plans, and watched their life savings drain away to pay tariff bills that weren鈥檛 in any budget or business plan. Today, the Supreme Court has validated what we鈥檝e been saying all along: These tariffs were unlawful from the start.鈥�
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