WASHINGTON – President Donald Trump vowed to circumvent the Supreme Court’s ruling Friday striking down his sweeping tariffs, announcing plans for a new 10% global tariff under a different legal authority. The decision, a 6-3 rebuke from the high court, invalidates tariffs imposed on billions of dollars worth of goods, marking a significant defeat for the president’s economic agenda.
The court ruled that the International Emergency Economic Powers Act (IEEPA) does not grant the president the authority to impose tariffs unilaterally. Chief Justice John Roberts delivered the opinion, joined by Justices Neil Gorsuch and Amy Coney Barrett, stating that IEEPA “contains no reference to tariffs or duties.” Justices Clarence Thomas, Samuel Alito, and Brett Kavanaugh dissented.
“We claim no special competence in matters of economics or foreign affairs,” Roberts wrote in the court’s opinion. “We claim only, as we must, the limited role assigned to us by Article III of the Constitution. Fulfilling that role, we hold that IEEPA does not authorize the President to impose tariffs.”
The ruling stems from legal challenges to tariffs imposed by Trump on goods from various countries, including China, steel and aluminum imports, and a broader range of products justified under national security concerns. The court’s decision throws U.S. Trade policy into uncertainty, reversing a key element of the president’s approach to international commerce.
Responding to the ruling at the White House, President Trump expressed outrage, stating, “I’m absolutely ashamed of the Supreme Court justices who voted to strike down my tariffs, calling the decision ‘deeply disappointing.’” He immediately announced his intention to sign an executive order imposing a 10% global tariff under Section 122 of federal law, and indicated he is exploring additional tariff measures through other avenues.
The legal battle over the tariffs marked the first time the Supreme Court directly assessed the legal basis of one of the president’s second-term policies. While the court had previously allowed the tariffs to remain in place during legal proceedings, Friday’s decision represents the most substantial loss for the administration thus far. The ruling effectively limits the president’s ability to use emergency powers to impose tariffs without congressional approval, reinforcing the constitutional principle that Congress holds the power to tax.
The decision is expected to trigger a complex legal and economic fallout. The CNBC reported that the U.S. Could potentially owe $175 billion in refunds to importers as a result of the invalidated tariffs. Small furniture retailers, who had been particularly impacted by the tariffs, now face an uncertain future, according to reports.
The immediate impact on consumer prices remains unclear. While the removal of tariffs could theoretically lead to lower costs for imported goods, experts caution that other factors, such as supply chain disruptions and global demand, could mitigate any potential price reductions. The New York Times is maintaining live updates on the developing situation, noting the defiant tone of the president’s response.
As of Friday evening, the White House has not released the text of the executive order outlining the new 10% global tariff. The legal basis for this new tariff, and its potential to withstand further legal challenges, remains to be seen.
