The U.S. Supreme Court on Friday ruled 6-3 that the president does not have authority under the International Emergency Economic Powers Act (IEEPA) to impose sweeping global tariffs, invalidating a major portion of the tariffs implemented over the past year.
In its decision, the Court determined that the 1977 emergency statute does not authorize tariff actions of this scale without congressional approval, reshaping federal trade policy following months of legal challenges.
The ruling comes after a year of shifting, elevated tariff rates that pushed the average U.S. tariff level to its highest point in decades and increased costs for employers across the country. In 2025, small businesses alone paid roughly $200 billion in tariff-related costs, the U.S. Chamber of Commerce reported.
Kentucky’s economy is particularly tied to global trade. The Commonwealth exports $47 billion in goods annually, representing 16% of state GDP. Kentucky businesses also rely on $94 billion in imports, and nearly 500,000 jobs across the state are tied directly to international trade.
Following the ruling, Kentucky Chamber President and CEO Ashli Watts released the following statement:
“This is a significant and much-needed win for Kentucky businesses and the American economy,” said Watts. “The Kentucky Chamber has been a strong opponent of tariffs because of the impact they have on employers, families, and overall economic momentum. Kentucky is home to manufacturing, bourbon, and agriculture, and these sectors have been among the hardest hit. Today’s decision is an important step toward putting our economy back on a path to growth.”
The ruling may also have implications for tariffs already collected, with further guidance expected from federal officials.
Stay tuned to The Bottom Line for more news relating to tariffs.