US Supreme Court Invalidates Trump's Tariffs: What It Means for Swedish Businesses

The U.S. Supreme Court has ruled that former President Donald Trump exceeded his presidential authority by imposing tariffs under the International Emergency Economic Powers Act (IEEPA). In a 6-3 decision, the court determined that the power to impose general tariffs lies with Congress, not the president, effectively invalidating tariffs amounting to over $130 billion collected under IEEPA. This landmark ruling directly impacts Swedish businesses subjected to these tariffs, especially as many EU countries, including Sweden, faced a 15% import tariff under the disputed measures.

Swedish Minister for Foreign Trade, Benjamin Dousa, welcomed the decision, criticizing the U.S. tariffs as harmful and reaffirming that Sweden has been critical from the outset. He noted the Swedish government is currently assessing how the ruling will affect Swedish companies and expressed hope that the decision would lead to lower tariffs. Meanwhile, the EU is actively engaging with the Trump administration to clarify the next steps in light of the court's ruling.

The ruling also opens the door for companies to sue the U.S. government to recover tariffs paid under IEEPA. Over 1,000 American businesses have pursued compensation, illustrating the broad economic impact domestically as well. Economist Robert Bergqvist expressed relief that the Supreme Court's conservative majority upheld constitutional principles, emphasizing that Congress, and not the president, should control trade policy. Bergqvist suggested that removing these tariffs could lower U.S. prices, positively influencing growth and inflation.

The Trump administration, which heavily relied on tariff revenue—over half of the $250 billion collected last year stemmed from IEEPA-based tariffs—is reportedly considering alternative tariff measures to replace those invalidated by the court. This possibility adds uncertainty and unpredictability to future trade policies.

While the immediate fate of the collected tariffs remains unclear, the ruling marks a significant setback for Trump’s economic agenda and provides a hopeful development for Swedish exporters affected by the tariffs. The situation continues to evolve as investigations and discussions between involved parties proceed.