The Supreme Court struck down President Donald Trump's far-reaching global tariffs on Friday, handing him a significant loss on an issue crucial to his economic agenda.The 6-3 decision centers on tariffs imposed under an emergency powers law, including the sweeping “reciprocal” tariffs he levied on nearly every other country.It's the first major piece of Trump's broad agenda to come squarely before the nation's highest court, which he helped shape with the appointments of three conservative jurists in his first term. Related Illinois companies keeping eye on Supreme Court case brought by Vernon Hills toymaker The majority found that the Constitution “very clearly” gives Congress the power to impose taxes, which include tariffs. “The Framers did not vest any part of the taxing power in the Executive Branch,” Chief Justice John Roberts wrote.Justices Samuel Alito, Clarence Thomas and Brett Kavanaugh dissented.“The tariffs at issue here may or may not be wise policy. But as a matter of text, history, and precedent, they are clearly lawful,” Kavanaugh wrote in the dissent.The decision doesn’t stop Trump from imposing duties under other laws. While those have more limitations on the speed and severity of Trump’s actions, top administration officials have said they expect to keep the tariff framework in place under other authorities.Trump set what he called "reciprocal" tariffs on most countries in April 2025 to address trade deficits that he declared a national emergency. Those came after he imposed duties on Canada, China and Mexico, ostensibly to address a drug trafficking emergency.A series of lawsuits followed, including a case from a dozen largely Democratic-leaning states that included Illinois and others from small businesses. The challengers argued the emergency powers law doesn’t even mention tariffs and Trump's use of it fails several legal tests, including one that doomed then-President Joe Biden's $500 billion student loan forgiveness program.The Supreme Court heard combined cases brought by the small businesses, including Learning Resources and Hand2Mind, toy makers based in Vernon Hills that are owned by the same family. Learning Resources filed its lawsuit last year, as did a group of other small businesses.“As family-owned, mission-driven education companies, we brought this lawsuit to protect our 500+ employees and the schools and families who rely on us," Learning Resources said in a statement. The Supreme Court’s decision, declaring tariffs under the International Emergency Economic Powers Act as unlawful, “is a powerful reaffirmation of the Rule of Law and Constitutional Separation of Powers that our country is built upon.”The Supreme Court’s ruling is “a win-win for the Constitution and the U.S. economy,” Phillip Braun, finance professor at Northwestern University's Kellogg School of Management, said in a statement. “It was clear from the initial imposition of the tariffs that they were not about the economy but rather, as a way for Trump to try to impose his will on the global economy.”We Pay the Tariffs, a national grassroots coalition of more than 800 small businesses, demanded automatic refunds to businesses that paid tariffs.“They’ve taken out loans just to keep their doors open. They've frozen hiring, canceled expansion plans and watched their life savings drain away to pay tariff bills that weren't in any budget or business plan. Today, the Supreme Court has validated what we've been saying all along: these tariffs were unlawful from the start,” We Pay the Tariffs Executive Director Dan Anthony said in a statement.Amanda Kezios, owner of Mojo Spa in Wicker Park and a We Pay the Tariffs member, said in a statement: “If tariffs were refunded quickly and reliably, my suppliers could lower ingredient and packaging costs. Restoring these products would immediately help close the revenue gap created during the months we were forced to discontinue more than 50% of our line due to tariff-related cost increases. That revenue is critical for sustaining the business through slower seasons and gives us a real chance to survive and stabilize.”But there are concerns about the lack of a refund system and that the Trump administration will find another way to impose additional duties.“Small businesses are rightfully worried that the administration will respond to this legal defeat by simply reimposing the same tariff policy through other means,” Anthony said.The Supreme Court ruling comes despite a series of short-term wins on the court’s emergency docket that have allowed Trump to push ahead with extraordinary flexes of executive power on issues ranging from high-profile firings to major federal funding cuts.The Republican president has been vocal about the case, calling it one of the most important in U.S. history and saying a ruling against him would be an economic body blow to the country. But legal opposition crossed the political spectrum, including libertarian and pro-business groups that are typically aligned with the GOP. Polling has found tariffs aren't broadly popular with the public, amid wider voter concern about affordability.The Constitution gives Congress the power to levy tariffs. But the Trump administration argued that a 1977 law allowing the president to regulate importation during emergencies also allows him to set tariffs. Other presidents have used the law dozens of times, often to impose sanctions, but Trump was the first president to invoke it for import taxes.The economic impact of Trump's tariffs has been estimated at some $3 trillion over the next decade, according to the Congressional Budget Office. The Treasury has collected more than $133 billion from the import taxes the president has imposed under the emergency powers law, federal data from December shows. Many companies, including the big-box warehouse chain Costco, have already lined up in court to demand refunds.Hannah Wilson, owner of The Dropped Stitch near Edgewater, said tariffs have raised costs and created stress and uncertainty for her yarn store. For example, costs have spiked for Wilson’s favorite knitting needle brand from a Michigan company that are considered the best on the market.“All of their production is done in China. Since I opened my store in November 2024, their wholesale prices have all increased by 20%-30%, due to the tariff situation,” Wilson said. “A complete set of needles that used to be $214.50 is now $271. Other brands are also increasing their prices, so simply switching to another supplier wouldn't help me.” Related Chicago’s ethnic grocery stores struggle to keep prices down and import goods Pritzker orders state agencies to assess potential effects of more Trump tariffs ...read more read less