In a recent development, former President Donald Trump’s imposition of tariffs faced a setback as the Supreme Court deemed it illegal. The court ruling highlighted that according to the U.S. constitution, decisions regarding tariffs should be made by Congress, not unilaterally by the president.

Trump’s strategy of using tariffs as a tool to shape various aspects of his agenda, from financial plans to international relations, has been a cornerstone of his administration. By leveraging the threat of imposing tariffs, often announced via social media, Trump sought to pressure other countries into compliance.

The Supreme Court’s decision has significant implications for Trump’s approach to governance. While the administration may explore alternative avenues to implement tariffs, legal experts suggest that the ruling is robust and may limit potential loopholes.

In the event that Trump’s alternative plan fails to materialize, several companies, including Costco, BYD (Chinese car manufacturer), and GoPro (camera manufacturer), could seek refunds for the import taxes paid over the past six months, potentially amounting to substantial sums.

Furthermore, the court ruling represents a blow to Trump on two fronts. Firstly, it diminishes his ability to wield tariffs as a coercive tool on the international stage. Secondly, it marks a rare instance where the Supreme Court, despite being predominantly conservative-leaning, opposed Trump’s actions by a significant margin, signaling a check on executive power.

The outcome of this decision underscores the legal boundaries of presidential authority and sets a precedent for future executive actions.