Dubai: The US Supreme Court has ruled that President Donald Trump’s broad tariff plan was illegal, saying he did not have the authority to impose sweeping import taxes without Congress.
In a 6–3 decision, the court said the Constitution gives Congress the power to impose taxes and tariffs, not the president. The ruling blocks tariffs that were introduced under emergency economic powers.
Lower courts had already questioned the legality of the move, and the Supreme Court decision now confirms that position.
However, within hours of the ruling, Trump announced a new 15% global import levy, raising it from 10%. He said the new tariff would be introduced using other legal tools available to the administration.
Under US law, the 15% levy can only remain in place for 150 days unless extended by Congress. Certain sector-specific tariffs, including those on steel and aluminium, are not affected.
Global reaction was cautious. European officials said they are reviewing the decision carefully. Canada and the UK also said they are studying the impact.
US stock markets showed limited reaction. Investors appear to be balancing the possibility of lower trade tensions against slower economic growth and ongoing inflation concerns.
For UAE investors with exposure to US markets, the situation remains important. Changes in tariffs can affect global trade, company earnings, and investment returns.
Markets are now watching whether further legal or political steps follow.
