Donald Trump’s tariffs have been struck down by the US Supreme Court. The Supreme Court ruled that President Trump overstepped federal law by unilaterally imposing broad, worldwide tariffs — a significant setback for the White House on an issue central to the administration’s foreign policy and economic strategy.

The judgement came in response to an application by businesses affected ‌by the tariffs from 12 mostly Democrat-run states. The applicants challenged US President Donald Trump’s use of an executive order to impose the sweeping country-specific taxes.

The three liberal justices, Ketanji Brown Jackson, Elena Kagan and Sonia Sotomayor, joined by three conservative justices, Amy Coney Barrett, Neil Gorsuch and John Roberts, voted to strike down the tariffs. Justices Brett Kavanaugh, Samuel Alito and Clarence Thomas dissented.

In its ruling, the Supreme Court said: “It is also telling that in IEEPA’s half century of existence, no President has invoked the statute to impose any tariffs, let alone tariffs of this magnitude and scope. That ‘lack of historical precedent,’ coupled with the breadth of authority’ that the President now claims, suggests that the tariffs extend beyond the President’s ‘legitimate reach.'”

Meanwhile, the Stock markets in the US and Europe jumped on Friday after the Supreme Court’s ruling against Trump’s tariffs.

The Dow Jones Industrial Average, S&P 500 and Nasdaq Composite were up between 0.1pc and 0.4pc as some companies were boosted by the ruling. Thousands of companies around the world have filed lawsuits challenging Mr Trump’s sweeping tariffs and sought refunds on duties paid.

They include Goodyear, whose shares jumped 1.3pc following the ruling, and EssilorLuxottica, which was up 1.9pc

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In April, Mr Trump imposed tariffs on goods from almost every country worldwide. He argues that these tariffs will boost government revenue, encourage consumers to choose American-made products, and stimulate investment in the United States.

However, the decision does not affect the sector‑specific tariffs Trump has separately placed on imports of steel, aluminum, and other products. Ongoing formal investigations that could result in additional targeted tariffs are still underway.

The UK government said it’s working with the US to understand how the overturning of Trump’s tariffs will affect the UK.

“We expect our privileged trading position with the US to continue,” it says in a statement.

It also says that while Supreme Court ruling is a matter for the US to determine, the government will continue to support businesses in the UK as further details are announced.