US President Donald Trump's punitive tariffs are not legal. The US Supreme Court ruled on Friday, Reuters reports. According to the court, Trump exceeded his authority when he imposed a series of increased tariffs.
Trump imposed the punitive tariffs using the International Emergency Economic Powers Act (IEEPA). The law is designed for national emergencies, but according to the country's Supreme Court, it does not give the president the authority to impose increased tariffs.
According to the US Constitution, it is Congress - and not the president - that has the authority to impose tariffs and regulate US trade with foreign countries.
Several US companies and states have filed lawsuits against the US administration because they believe that President Donald Trump has exceeded his authority by imposing increased tariffs on goods from abroad.
The question of whether the president has a legal basis for his tariff policy has reached the US Supreme Court, after several lower courts have upheld the plaintiffs' claims.
According to Reuters, Trump is the first president to use IEEPA for tariffs. Historically, the law has been used to impose sanctions on enemies or freeze their assets.
It was back in February 2025, shortly after Trump's inauguration as president, that Trump initially raised tariffs on goods from China, Canada and Mexico.
Trump then said that tariffs would be imposed on goods from even more countries - including EU countries. He has referred to these tariffs as retaliation for trade barriers.
Danish Industry's employee in Washington, Senior Chief Consultant Peter Bay Kirkegaard, calls the decision a relief for Danish business, but emphasizes that Danish companies cannot yet breathe a sigh of relief.
- There are still many unknowns about the consequences of what the decision will specifically mean for the existing tariffs. The question of whether previously collected tariffs should be refunded is also unclear at this time, he says in a written comment to Ritzau.
The senior chief consultant also points out that the Trump administration has previously announced that it has other legal options for imposing tariffs.
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