President Donald Trump hit back at the Supreme Court Friday morning, labeling a landmark ruling against his administration’s trade policy a “disgrace.” Speaking during a White House breakfast shortly after the decision was released, the President expressed his disagreement with the judicial branch and teased a “backup plan” to keep his economic agenda on track.
The 6–3 ruling in Trump v. V.O.S. Selections, Inc. effectively stripped the executive branch of its power to unilaterally impose broad import duties. Writing for the majority, Chief Justice John Roberts was joined by fellow conservatives Neil Gorsuch and Amy Coney Barrett, along with the court’s three liberal justices.
The Court found that the administration’s use of the International Emergency Economic Powers Act (IEEPA) to bypass Congress was not authorized by law, even under the umbrella of a national emergency.
The decision is expected to trigger a massive economic shift. The administration had previously warned that losing this case could force the federal government to refund billions of dollars in revenue already collected from the “Liberation Day” tariffs.
The legal challenge was spearheaded by the Liberty Justice Center on behalf of five small businesses that argued the 10 percent global tariffs were an unconstitutional tax.
“The Liberty Justice Center is proud to have led the fight to challenge these illegal tariffs that devastated small businesses around the country. Federal courts at every level have now recognized that these tariffs, imposed without Congressional authorization, are unlawful and cannot stand,” said Jeffrey M. Schwab,
Senior Counsel and Director of Litigation at the Liberty Justice Center. Schwab credited Neal Katyal for his advocacy and noted that the firm is now launching a referral network and information portal to help companies reclaim their money.
For the plaintiffs, the ruling is a reprieve from what they described as a chaotic and unpredictable trade environment. Victor Owen Schwartz, founder of V.O.S. Selections, said the duties had threatened the very survival of his company.
“This spring, thousands of American small businesses like mine were thrown into chaos. The administration’s tariffs–which my business was forced to pay–threatened our survival. These duties were not like past tariffs set by Congress, which we could plan around. These new tariffs were arbitrary, unpredictable, and bad for business,” Schwartz said. He added that he is now looking forward to the government’s refund of these “improperly collected taxes.”
The Court’s decision follows a string of lower court victories for the small business owners, starting with a unanimous ruling by the U.S. Court of International Trade last May. While the administration fought to keep the tariffs in place through the appeal process, the Supreme Court’s final word provides definitive clarity: the power to set tariff schedules remains a Congressional authority.
The Liberty Justice Center is now working to ensure the government complies with the order to dissolve the tariff measures. Affected businesses can currently access a refund interest form on the organization’s website to begin the process of pursuing their claims.
READ: Kentucky Sen. Rand Paul Says Supreme Court Ruling Is ‘Defense’ Against AOC-Style Emergency Overreach
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