The highest court in the land has struck down a key pillar of President Trump’s trade policy. In a 6–3 decision issued this morning, the Supreme Court ruled that sweeping tariffs enacted on countries around the globe were in violation of U.S. law.

Siding with the majority, Chief Justice John Roberts wrote that the 1977 legislation used by the administration did not grant it power to levy tariffs: “The president asserts the extraordinary power to unilaterally impose tariffs of unlimited amount, duration, and scope. In light of the breadth, history, and constitutional context of that asserted authority, he must identify clear congressional authorization to exercise it.” Justices Brett Kavanaugh, Clarence Thomas and Samuel Alito dissented.

The Supreme Court’s ruling affects the so-called “reciprocal” tariffs put into place on April 2, 2025, and many of the subsequent duties enacted over the first year of Trump’s second term in office. However, several tariffs still remain in effect, including the duties on imported upholstered furniture, cabinets and vanities, which were enacted under a different legal framework.

Speaking with the press this afternoon, Trump disparaged the decision and vowed to carry out his trade policy through other means, including a global 10 percent tariff he plans to enact through a separate 1970s–era law. The president also promised to open new investigations into “unfair trade practices,” which could lead to further additional tariffs.

The ruling will likely kick off a new legal scramble: the battle for refunds. The court did not lay out a path for companies to seek reimbursement of tariffs they have paid, and much about the situation remains murky. Nevertheless, more than one thousand companies—including several in the home industry—have filed preemptive lawsuits against the U.S. government, seeking refunds on some or all of the tariff bills they’ve paid over the past year. In his dissent, Kavanaugh warned that the process would be a “mess.”

Today’s ruling is not a complete shock—during oral arguments last November, it was clear that many justices were skeptical of the president’s case. Yet in the design industry, the news is being met with a mixture of surprise and confusion. “In the short term, this is going to cause chaos,” says Suren Gopalakrishnan, an international sourcing expert and co-founder of MakersPalm, a company that helps brands and designers develop products and supply chains. “People have containers at the port right now, and the question is: How much do I pay?”

This is a developing story. Stay tuned for updates.