Supreme Court Blocks Trump’s Global Tariffs, President Announces New 10% Import Tax

The Supreme Court ruled 6-3 that President Trump lacks authority to unilaterally impose tariffs on imports, striking down his global trade policy. Trump responded angrily to Friday's decision, immediately announcing a new 10% tariff on all imports using different legal authority. The ruling creates fresh uncertainty in global markets after a year of Trump's trade war policies.

President Donald Trump lashed out at the Supreme Court following Friday’s decisive 6-3 decision that stripped away his authority to independently impose import tariffs, as he pledged to persist with his worldwide trade conflict that has created global economic tension over the past year.

Dismissing what he characterized as an absurd decision, Trump declared an immediate 10% import tax on goods from every nation, adding to any tariffs already in place. Current law permits him to enforce this tax for 150 days, though legal challenges may emerge.

The Supreme Court’s historic decision eliminated the negotiating power that Trump and his trade representatives have used against foreign nations at diplomatic tables to alter international relationships and worldwide commerce.

The decision initially caused U.S. stock markets to jump before closing with modest gains, as financial experts cautioned about returning market instability while awaiting Trump’s future actions.

The court’s ruling raises doubts about trade agreements that Trump’s representatives have secured in recent months by threatening steep tariffs. The decision leaves uncertain what happens to the $175 billion Trump has gathered from American importers through what the court determined was his misinterpretation of existing law.

“I’m ashamed of certain members of the court, absolutely ashamed, for not having the courage to do what’s right for our country,” Trump stated to White House reporters, arguing that foreign nations were celebrating the decision and “dancing in the street.”

Without providing proof, he suggested that most justices yielded to outside pressure: “They’re very unpatriotic and disloyal to our Constitution. It’s my opinion that the court has been swayed by foreign interests and a political movement that is far smaller than people would ever think.”

After returning to office 13 months ago, Trump claimed he possessed what the court described as the “extraordinary power to unilaterally impose tariffs of unlimited amount, duration, and scope.” Declaring a national emergency, he argued the International Emergency Economic Powers Act (IEEPA) gave him authority to establish tariffs at whatever level he selected.

Chief Justice John Roberts anchored the court’s decision with language from the U.S. Constitution: “The Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises.”

The Trump administration’s claim that it had identified a war-like crisis to establish a legal exception did not convince the justices.

“The Government thus concedes, as it must, that the President enjoys no inherent authority to impose tariffs during peacetime,” Roberts stated in his opinion.

“And it does not defend the challenged tariffs as an exercise of the President’s warmaking powers. The United States, after all, is not at war with every nation in the world.”

Even with the court’s clear statement that the president had overstepped his constitutional limits, Trump told reporters: “It’s ridiculous, but it’s OK, because we have other ways, numerous other ways.”

Following twelve months of Trump’s frequently spontaneous tariff declarations that have disrupted markets and the international economy, the ruling and Trump’s reaction have brought back significant uncertainty that economists, investors and government officials hoped was behind them.

“I think it will just bring in a new period of high uncertainty in world trade, as everybody tries to figure out what the U.S. tariff policy will be going forward,” stated Varg Folkman, an analyst with the European Policy Centre think tank.

Treasury Secretary Scott Bessent suggested the court decision might produce varying outcomes.

“The Supreme Court has taken away the President’s leverage, but in a way, they have made the leverage that he has more draconian because they agreed he does have the right to a full embargo,” Bessent explained on Fox News’ “The Will Cain Show.”

“We will get back to the same tariff level for the countries. It will just be in a less direct and slightly more convoluted manner,” he added.

By implementing his new temporary 10% tariff, Trump became the first president to use Section 122 of the Trade Act of 1974, which permits the president to impose tariffs up to 15% for as long as 150 days to address “fundamental international payments problems.” This action may also face legal opposition. These tariffs can only continue beyond that timeframe with Congressional approval.