Supreme Court Strikes Down President Trump’s Tariff Trade Strategy

The U.S. Supreme Court ruled on Friday that imposing duties without Congressional authorization exceeds presidential powers. RealAg Radio host Shaun Haney joins us to discuss the potential trade and agriculture implications of the recent ruling.

SCOTUS-Building_GaryBlakeleyAdobeStock_27844626_1920x1080

Supreme Court Building in Washington, D.C.

Photo by Gary Blakeley

WASHINGTON, D.C. (RFD NEWS) — The Supreme Court handed down a major ruling on President Donald Trump’s tariff trade strategy. Several opinions are expected from the Court this morning.

The U.S. Supreme Court ruled 6-3 that the Trump Administration’s controversial trade strategy to impose global duties without Congressional approval exceeded the limits of presidential power. Details of the decision and how the tariffs will be rolled back are still be released.

“Article I, Section 8, of the Constitution sets forth the powers of the Legislative Branch. The first Clause of that provision specifies that “The Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises.” It is no accident that this power appears first. The power to tax was, Alexander Hamilton explained, “the most important of the authorities proposed to be conferred upon the Union.” The Federalist No. 33, pp. 202–203 (C. Rossiter ed. 1961). It is both a “power to destroy,” McCulloch v. Maryland, 4 Wheat. 316, 431 (1819), and a power “necessary to the existence and prosperity of a nation”—“the one great power upon which the whole national fabric is based.” Nicol v. Ames, 173 U. S. 509, 515 (1899).

The power to impose tariffs is “very clear[ly] . . . a branch of the taxing power.” Gibbons v. Ogden, 9 Wheat. 1, 201 (1824). “A tariff,” after all, “is a tax levied on imported goods and services.”

U.S. Supreme Court

Sen. Chuck Grassley (R-IA), a senior member of the Senate Finance Committee and chairman of the Senate Judiciary Committee, today issued the following statement regarding the Supreme Court’s decision on tariffs:
“While Congress gave some of its authority on importations to the president when it passed the 1977 International Emergency Economic Powers Act (IEEPA), the Supreme Court has determined that Congress did not authorize President Trump’s use of tariffs. I’m one of the only sitting members of Congress who was in office during IEEPA’s passage. Since then, I’ve made clear Congress needs to reassert its constitutional role over commerce, which is why I introduced prospective legislation that would give Congress a say when tariffs are levied in the future. President Trump is a very skilled negotiator, and I want him to continue to be successful in expanding market access. He’s already succeeded in deals, including getting American beef into Australia, ethanol and beef into England, rice into Japan and pork into Taiwan. I appreciate the work he and his administration are doing to restore fair, reciprocal trade agreements. I urge the Trump administration to keep negotiating, while also working with Congress to secure longer-term enforcement measures so we can provide expanded market opportunities and certainty for Iowa’s family farmers and businesses.”
Sen. Chuck Grassley (R-IA)

A recent ruling is raising new questions about what it could mean for agricultural trade moving forward, particularly for Canadian producers and cross-border relationships.

RealAg Radio host Shaun Haney joined us on Friday’s Market Day Report just after the news broke to share his perspective on how the ruling could impact Canadian agriculture and trade.

In his interview with RFD NEWS, Haney discussed the potential implications for Canadian producers and whether the decision could influence future trade negotiations or ongoing trade discussions between key partners. He also weighed in on whether the ruling could shape the broader tone of upcoming trade agreements or disputes affecting agriculture.

What’s Next for Tariffs from a Legal Standpoint?

The U.S. Supreme Court has struck down tariffs imposed under emergency powers by former President Trump, ruling 6-3 that the president lacks the authority to levy duties without congressional approval. The decision has prompted widespread speculation about the next steps and the potential impact on American agriculture.

Roger McEowen with the Washburn School of Law joined us on Friday’s Market Day Report to break down the ruling. McEowen explained the legal reasoning behind the decision and how it affects tariffs previously imposed on trading partners. He also discussed potential implications for the agriculture sector, including how U.S. farmers and exporters might navigate shifts in trade dynamics.

McEowen outlined the next steps in the legal and legislative process and weighed in on whether the ruling could influence upcoming trade negotiations or ongoing disputes.

In a post on Truth Social, President Trump warned overturning the tariffs would create what he called a “complete mess,” potentially disrupting ongoing trade deals. Treasury officials say contingency plans are already in place if the Court strikes the duties. At the same time, a Financial Times report says the administration is considering rolling back some steel and aluminum tariffs amid growing political pressure.

Trump scheduled a press conference at 1:30 PM ET to share his reaction to the Supreme Court’s decision.

Stay with RFD NEWS on Market Day Report, Rural Evening News, and our social channels for updates on this developing story critical to agriculture.

Follow us on social media
Related Stories
Farm Bureau Economist Faith Parum discusses key outcomes from the U.S.-China trade agreement and the benefits of expanding trade across Southeast Asia.
Chris Bliley with Growth Energy discusses ongoing concerns about U.S. ethanol exports and the expansion of market access promised under the Phase One deal between the U.S. and China.
“It does not extinguish right away here — in any sort of sense — the real profitability concerns and people’s ability to pay bills and get to the other side of this in the very short term. This is where the skepticism builds.”
U.S. Senator Roger Marshall (R-KS) shares his perspective on the U.S.-China trade developments and their potential impact on American producers, farmers, and ranchers.
Rich Nelson, a commodity broker for Allendale Inc., joins us to break down what the U.S.-China trade agreement means for the ag economy.
The U.S.-China summit raises hopes for stronger exports and reduced barriers, but U.S. ag players should remain strategically cautious until concrete volumes and certifications materialize.

Marion is a digital content manager for RFD News and FarmHER + RanchHER. She started working for Rural Media Group in May 2022, bringing a decade of digital experience in broadcast media and some cooking experience to the team.

LATEST STORIES BY THIS AUTHOR:

Julie Callahan was nominated earlier this summer by President Donald Trump, and U.S. Trade Representative Jamieson Greer told lawmakers she is ready to hit the ground running.
Dr. Jeffrey Gold, President of the University of Nebraska, joined Rural Health Matters to outline a few key reminders for parents about keeping kids healthy during the holiday season.
Farm Journal Foundation Senior Policy Adviser Dr. Stephanie Mercier outlines new research on the top sixteen biosecurity threats in agriculture/
Rancher David Kroa of One Man Ranch joins us to share the story of his remarkable Shorthorn cow, Trish, who is beating the odds.
American Soybean Association President Caleb Ragland shares the soybean sector outlook following the announcement of farm aid to offset losses for U.S. row crop growers.
Sen. Deb Fischer, of Nebraska, mentioned that Congress pushing through year-round E15 sales will do more to help commodity growers than more farm aid, which is currently a reality.