SCOTUS blocks tariffs, ag groups urge trade policy stabilization

The U.S. Supreme Court has struck down a broad set of Trump-era tariffs, a decision that farm groups say could relieve U.S. farmers and growers facing rising costs for fertilizer, equipment and other critical inputs. The ruling removes the legal basis for tariffs that disrupted markets and raised input costs during an already challenging year for agriculture.

The Supreme Court ruled that the president overstepped his authority under the International Emergency Economic Powers Act (IEEPA), and that Congress — not the White House alone — controls sweeping tariff measures. The decision underscores the legal limits of unilateral executive action on trade and has immediate implications for agriculture and produce markets.

U.S. Customs and Border Protection confirmed in an industry notice that it has stopped collecting the tariffs tied to the emergency powers orders as of 12:01 a.m. ET Feb. 24, deactivating the related tariff codes in its system. The agency said the change applies only to duties imposed under the IEEPA and does not affect tariffs enacted under other trade authorities.

The American Farm Bureau Federation (AFBF) praised the administration’s goal of supporting U.S. producers but highlighted the toll tariffs have taken on farmers.

In a release, AFBF President Zippy Duvall said farmers understand the aim “to create a more level playing field for U.S. goods, U.S. workers and the U.S. economy,” but added that “trade disruptions and declining prices for agricultural goods created additional hardships for farmers who came into 2025 already dealing with crippling inflation and declining farm prices.”

Duvall emphasized the need for policy stability going forward. “With supply costs already at or near record highs, we strongly encourage the president to avoid using any other available authorities to impose tariffs on agricultural inputs that would further increase costs,” he said. “America’s farmers and ranchers need stability to ensure families across America can put food on their tables.”

The International Fresh Produce Association (IFPA) also issued a release welcoming the ruling, noting it “clarifies the limits of the International Emergency Economic Powers Act” and helps restore predictability to global produce markets. IFPA added, “Global trade of fresh produce is essential to the health and well-being of people in every nation, and today’s ruling helps restore predictability to a uniquely complex, seasonally driven marketplace.”

Other farm organizations, including the National Farmers Union and Farmers for Free Trade, echoed AFBF’s call for stable trade policy, warning that tariffs on agricultural inputs disrupt markets and raise costs just as planting season approaches.