It is Congress, not Trump, that should decide on general tariffs, according to the Supreme Court.
I feel reassured that the conservative majority on the Supreme Court is choosing to stick to what is written in the US Constitution, says Robert Bergqvist.
From a constitutional perspective, this setback is extremely important.
If tariffs are withdrawn, prices in the US could fall more quickly, which would be positive for growth and inflation in the short term.
The problem is that we don't know what Donald Trump's next step is.
The constitutional dimension is nevertheless many times more important than the economic implications, Bergqvist believes.
It's about Trump trying to expand presidential power in various ways, not least in the area of trade policy. This is a clear setback for him.
The background to the Supreme Court decision is that more than 1,000 American companies have pursued the case in court and requested compensation for the global tariffs that Trump announced in April last year.
It is primarily American importers who have had to pay for these tariffs. It remains to be seen whether they will now get their money back.
