U.S. Supreme Court blocks Trump’s use of emergency powers to impose tariffs

The United States Supreme Court has ruled that former president Donald Trump could not rely on a national emergencies statute to impose sweeping tariffs on several countries, including Canada, during his time in office.

In a decision released Friday, the court found that Trump’s use of the International Emergency Economic Powers Act to justify what he called “Liberation Day” tariffs exceeded the scope of the law. The measures had targeted imports from Canada, Mexico and China, and were also linked to fentanyl-related trade actions.

The tariffs were introduced as part of a broader strategy to address trade imbalances and cross-border drug trafficking. However, critics argued the emergency powers law was designed primarily to address extraordinary foreign threats, not to implement broad trade policy. The Supreme Court’s ruling limits how future presidents may interpret and apply that authority.

The decision has implications for Canada, one of the United States’ largest trading partners. Canadian industries, including steel, aluminum and agriculture, were affected by shifting U.S. tariff policies during Trump’s presidency. Business groups in provinces such as British Columbia and Alberta have previously warned that abrupt tariff changes can disrupt supply chains and increase costs for exporters and consumers on both sides of the border.

The ruling clarifies the boundaries between executive authority and congressional control over trade, reinforcing the role of lawmakers in setting tariff policy. Trade analysts say the decision could influence how future administrations approach disputes involving Canada and other key partners.