The Trump administration moved swiftly Saturday to scrap portions of its tariff regime after the U.S. Supreme Court invalidated key emergency powers used to justify the levies. An executive order from the White House declared that additional tariffs under the International Emergency Economic Powers Act, enacted through prior presidential directives, will cease immediately, with collections halted as quickly as practicable.

Officials emphasized the order responds directly to the court’s ruling, which deemed the national emergency declaration supporting the tariffs legally untenable. The decision upended tariffs on billions in imports, primarily targeting steel, aluminum and consumer goods from China and other trading partners.

“In light of recent events,” the executive order states, those specific duties “will no longer be in effect.” White House aides confirmed the change affects measures rolled out in 2018 and 2019, sparing broader trade actions under different authorities like Section 301 of the Trade Act.

The Supreme Court, in a 6-3 ruling late Friday, held that Trump overstepped by invoking the 1977 International Emergency Economic Powers Act for indefinite trade barriers without fresh congressional approval. Chief Justice John Roberts wrote the majority opinion, arguing the law targeted short-term crises, not long-haul economic strategies.

Justice Sonia Sotomayor dissented, warning the decision could hobble future presidents facing genuine threats. Business groups hailed the outcome. The U.S. Chamber of Commerce called it a “victory for rule of law and free markets,” predicting lower costs for manufacturers reliant on imported components.

Tariff collections had generated over $80 billion since 2018, according to Treasury Department figures. Critics long argued the revenue came at the expense of American exporters hit by retaliation from the European Union, Canada and Mexico. Beijing imposed duties on U.S. soybeans, autos and aircraft in response.

Markets reacted positively. The Dow Jones Industrial Average climbed 250 points in early trading Saturday, while the yuan strengthened against the dollar. Analysts at Goldman Sachs forecast a 0.5% boost to GDP growth over the next year from reduced input costs.

The White House order directs the Commerce and Treasury departments to unwind the affected tariffs within 30 days. Refunds for duties already paid remain under review, officials said. Commerce Secretary Wilbur Ross, a tariff architect, downplayed the shift, insisting core protections for domestic steelmakers stay intact.

Democrats seized on the development. House Speaker Nancy Pelosi described the tariffs as “reckless from the start,” urging Congress to reclaim trade oversight. Senate Minority Leader Chuck Schumer predicted Trump would test new emergency pretexts.

This marks the latest check on executive trade authority. Lower courts had split on challenges to the tariffs, with the Ninth Circuit upholding them last year before the Supreme Court intervened. The ruling stems from lawsuits by importers like the Liberty Steel Group, which faced millions in extra costs.

Trump tweeted approval of the court’s action hours before the executive order, writing, “Tariffs were always a negotiating tool—now we pivot smarter.” His trade team eyes bilateral deals to replace the blanket approach.

Economists debate the tariffs’ net impact. A Federal Reserve study pegged job losses at 300,000 in manufacturing and agriculture, offset by gains in protected sectors. Consumer prices rose 1.4% on tariffed goods, per National Bureau of Economic Research data.

As agencies implement the unwind, supply chains brace for adjustments. Importers in Los Angeles and Newark ports reported surging orders Friday, anticipating duty-free shipments. The shift caps a saga that reshaped global trade for three years.