In a massive blow to executive overreach, the U.S. Supreme Court ruled today that the President cannot simply invent taxes at the border. The 6-3 decision in Trump v. V.O.S. Selections, Inc. officially strips the White House of its “Liberation Day” tariff powers, reminding the administration that the nation’s checkbook belongs to Congress, not the Oval Office.
The legal brawl began in April 2025 after the administration used the International Emergency Economic Powers Act (IEEPA) to slap a 10 percent global tariff on almost everything entering the country. Small businesses, represented by the Liberty Justice Center, sued immediately.
They argued that “emergency powers” aren’t a loophole to bypass the Constitution’s clear rule: only Congress has the power to tax.
Today, the Justices agreed. The ruling confirms that the President cannot invoke emergency status to unilaterally set tariff rates, effectively ending a year of “arbitrary” trade policy that left many American businesses on the brink of collapse.
“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 also credited Neal Katyal for his “tireless advocacy” in the case and announced that the firm is already setting up a database to help businesses hunt down their refunds.
For the small business owners who lived through the fallout, the victory is more than just a legal theory—it’s about staying in business. Victor Owen Schwartz, the founder of V.O.S. Selections, recalled the chaos that hit his company last spring when the duties were first announced.
“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. “Thankfully, courts at every level recognized these duties for what they were: unconstitutional government overreach. We look forward to the government’s refund of these improperly collected taxes.”
The decision follows a string of losses for the administration in lower courts. While the government fought to keep the billions of dollars it had already collected, the Supreme Court’s final word means the “Liberation Day” era is over. Now, the focus shifts to the massive logistical task of returning that money to the companies that paid it.
The Liberty Justice Center has already launched a refund interest form on its website to help affected companies connect with legal teams. As the ruling takes effect, the message from the Court is clear: when it comes to the economy, the President still has to follow the law.
READ: Kentucky Sen. Rand Paul Says Supreme Court Ruling Is ‘Defense’ Against AOC-Style Emergency Overreach
Please make a small donation to the Tampa Free Press to help sustain independent journalism. Your contribution enables us to continue delivering high-quality, local, and national news coverage.
Sign up: Subscribe to our free newsletter for a curated selection of top stories delivered straight to your inbox
