The U.S. Supreme Court ruled Friday morning that President Donald’s Trump’s tariffs policies are unconstitutional, dealing a major blow to the president’s economic agenda and easing pressure on San Antonio and other Texas communities that rely heavily on foreign trade.
The 6-3 decision turns back tariffs Trump unilaterally imposed under an emergency powers law, including sweeping “reciprocal” trade penalties slapped on nearly every country, including key U.S. allies and trading partners. The court’s majority ruled that the U.S. Constitution “very clearly” gives Congress the power to impose taxes, including tariffs.
As Trump unveiled his tariff plans, economists warned that Texas would face severe economic consequences, including job losses, diminished consumer buying power and cuts to its gross product. The tariffs on Mexico, Canada and China alone had the potential to kill more than 400,000 jobs in the state, economic consultancy The Perryman Group found last March.
Among Texas cities, the San Antonio faced especially high economic penalties.
The Canadian Chamber of Commerce identified the Alamo City as the U.S. metro facing the most damage from Trump’s tariffs on the nation’s northern neighbor. Nearly half of our city’s exports — $6 billion in goods, from trucks to farm equipment to aircraft — go to the Canadian market.
“Today’s Supreme Court ruling is an affirmation that the president is not above the law,” U.S. Rep. Joaquin Castro, D-San Antonio, said in an emailed statement. “Congress has constitutional authority over tariffs, and I am glad to see the highest court uphold this. San Antonians and families across the country deserve lower costs, not reckless trade wars.”
Earlier this month, Joaquin Castro delivered a speech on the U.S. House floor supporting a resolution that would end Trump’s tariffs on Canada. That measure ultimately passed and now heads to the U.S. Senate.
“Nearly half — 48% — of San Antonio’s exports go to Canada, the highest share of any major city in the country. Our economy is deeply tied to North American supply chains,” he said. “Thousands of San Antonians work in aerospace, automotive manufacturing, energy machinery, semiconductors and medical devices — exactly the high-paying industries we want to be growing here in the United States.”
Despite the Supreme Court’s action on Friday, Trump critics were quick to point out that the ruling won’t immediately remedy the damage for small businesses and households, since prices won’t come immediately and consumers may never see the savings passed on.
“While finally stopping Trump’s abuse of one law, the Supreme Court cannot undo the real damage that abuse has already inflicted on American families and small businesses,” U.S. Rep. Lloyd Doggett, D-Austin, said in an emailed statement.
“Trump’s ‘Liberation Day’ may be over, but prices driven up by his reckless tariff taxes will not suddenly come down,” the congressman added. “Nor are those ultimate consumers, who have already paid for tariffs with higher prices, assured any benefit. Any refunds go to corporations, some of whom will pocket a windfall if they have already passed on tariff costs to consumers.”
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