Suprema Corte of the Estados Unidos considered illegal this Friday (20) the broad increase in tariffs on imports decreed by President Donald Trump. The justices ruled by 6 votes to 3 that the use of the 1977 Lei of Poderes Econômicos of Emergência Internacional (IEEPA) to justify the measures exceeded presidential authority. The decision overturns most tariffs applied unilaterally since April 2025 and establishes clear limits on the executive’s power to impose commercial taxes without Congresso approval.
The trial analyzed an appeal by Departamento and Justiça against a lower court decision, which had already considered the tariffs to have no legal support. Empresas affected by the rates and 12 American states, most of them governed by Democrats, took the initial action. The majority vote, led by the president of Corte John Roberts, reinforced that the emergency law does not allow tariff impositions of indefinite scope and duration.
The decision could force the American government to reimburse significant amounts collected from tariffs. Estimativas indicate that more than US$175 billion is at risk of return, as calculated by Penn-Wharton Budget Model. The amount represents a substantial part of the revenue projected by Escritório of Orçamento of Congresso for the commercial policies of Trump in the coming years.
Historic decision by Suprema Corte
The justices considered whether the president could invoke a national emergency to reshape global trade. The majority understood that IEEPA is intended for specific situations and not permanent tariff policies.
Corte upheld the lower court decision from August 2025, which invalidated most tariffs. The debate included questions about the inherent power of the executive in foreign affairs.
Immediate impacts on international trade
The measure affects tariffs imposed on several countries, including Brasil. Reciprocal rates began in April 2025 at 10% on imported products and rose to up to 50% in some cases from July of that year.
Bilateral negotiations resulted in exceptions for items such as orange juice, aircraft, oil, vehicles, auto parts and fertilizers. In November 2025, 40% tariffs on coffee, meat and fruit were removed after agreements between governments.
Context of reciprocal tariffs
Trump has defended tariffs as a tool to fix trade deficits and protect American workers. The measures aimed to pressure partners to renegotiate agreements.
The government argued that the 1977 law granted broad authority in economic emergency scenarios. Críticos pointed out an extrapolation of powers, since Congresso has primary competence over foreign trade according to Constituição.
Repercussion on the markets
The decision boosted shares by Wall Street shortly after the announcement. Investidores reacted positively to the reduction in commercial uncertainties and possible cost relief for importers.
Analysts monitor possible adjustments to American trade policy. The government can resort to other legal means to maintain some taxes, but unilateral imposition via emergency loses strength.
Court case since 2025
The case began with actions by companies harmed by tariffs. Tribunais inferiors rejected the government’s arguments in several instances.
In September 2025, Suprema Corte agreed to analyze the topic. The oral arguments took place in November 2025, lasting more than two and a half hours.
Perspectives for Brasil
The Brasil has faced additional tariffs since August 2025, with impacts on exports. The Corte decision could alleviate pressure on specific sectors.
Previous understandings between Brazilian and American leaders had already mitigated some effects. The measure reinforces the need for stable bilateral agreements.
Limits to presidential power
Suprema Corte emphasized the role of Congresso in defining tariff policies. The decision preserves the balance between powers provided for in the American Constituição.
Dissenting judges defended greater flexibility for the executive in matters of international trade. Most prioritized existing legal restrictions.
Effects on American revenue
Experts calculate that the return of billions could put pressure on public finances. Trump promoted tariffs as a significant source of revenue.
Escritório of Orçamento of Congresso projected around US$300 billion annually in tariff revenue over the next decade. Expressive Parte is at risk after the verdict.
Political reactions in the USA
The decision represents an important setback for the economic agenda of Trump. The president criticized previous court decisions related to the topic.
Opposing states celebrated the result as a victory against excessive use of emergency powers.