The Supreme Court today 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. In a 6-3 decision, the Justices struck down the President’s ability to impose sweeping “reciprocal” tariffs that he levied on nearly every global trade partner.

This is a sigh of relief for businesses across the country. It does bring up the question though, “if these tariffs must be reversed and a global partner or American company reimbursed, who will pay?” It would seem, the American people.

At the center of the case brought before the Supreme Court was the International Emergency Economic Powers Act, known as IEEPA, which authorizes the president to use the law “to deal with any unusual and extraordinary threat, which has its source in whole or substantial part outside the United States, to the national security, foreign policy, or economy of the United States, if the president declares a national emergency with respect to such threat.” (SCOTUS Blog)

In a 6-3 decision, the Supreme Court agreed with the parties who brought suit that the IEEPA did not give President Trump the sweeping power to impose the tariffs. Chief Justice as well as five other Supreme Court Justices opined that the President did not have the power he wielded and that two key words, “regulate” and ”importation” do not confer power to Trump to impose tariffs or duties.

Certainly, this is a case to be watched, given its impact both domestically and globally.