The Supreme Court on Friday struck down a significant portion of former President Donald Trump’s global tariff regime, ruling that the power to impose taxes rests with Congress. Hours later, Trump responded by announcing a new 10% across-the-board tariff on all imports, escalating tensions with lawmakers and raising concerns about the economic fallout.
The Court’s decision, a 6-3 ruling, centered on tariffs imposed under the International Emergency Economic Powers Act (IEEPA) of 1977. While the ruling doesn’t invalidate all tariffs enacted during the Trump administration, it specifically targets those implemented using emergency powers. Many Republican lawmakers initially reacted with cautious optimism to the ruling, with some even praising it as a reaffirmation of constitutional principles.
However, that relief proved short-lived. By Friday afternoon, Trump signaled his intention to circumvent Congress, announcing the new 10% tariff. On Saturday morning, he further escalated the situation, raising the proposed tariff to 15%. He justified the move under Section 232 of the Trade Expansion Act of 1974, a law that allows the president to impose tariffs based on national security concerns related to trade deficits. This is the first time this particular law has been invoked in this manner.
“I have the right to impose tariffs, and I always have,” Trump stated at a press conference, adding that he does not require congressional approval. The move immediately drew criticism from both Democrats and some Republicans, who warned of potential economic repercussions.
Tariffs have been a consistent point of contention between Trump and Congress. Both the House and Senate have previously passed resolutions attempting to overturn tariffs imposed on trading partners like Canada. Senator Mitch McConnell, a long-time Republican leader, stated that the “futile merits of radical trade wars with U.S. Friends were evident long before today’s decision,” adding that tariffs increase prices for consumers and disrupt key industries in his home state of Kentucky.
The Supreme Court’s decision comes as Democrats seek to regain control of Congress, and they intend to capitalize on the issue. Senate Majority Leader Chuck Schumer challenged Republicans to block Trump’s new global tariff, arguing it would “continue to raise costs for people and hurt the American people just like his old tariffs did.” Senator Elizabeth Warren echoed this sentiment, calling for refunds to consumers for tariffs already paid.
According to an analysis by the JPMorganChase Institute, U.S. Medium-sized businesses have absorbed the cost of import taxes by passing them on to customers in the form of higher prices, reducing their workforce, or accepting lower profits.
The legality of Trump’s use of the 1974 Trade Expansion Act is now likely to be challenged in court. While the Supreme Court affirmed Congress’s constitutional authority over tariffs, Trump’s invocation of Section 232 has not been previously tested in the courts. Some Republican lawmakers have expressed concern about the potential economic consequences of Trump’s plans, but have so far been hesitant to directly confront the former president.
Representative Don Bacon, a Republican critic of the administration, stated on social media that “Congress must defend its own prerogatives, make tough decisions, and uphold its powers.” Bacon predicted further Republican resistance, noting that he and other members of the party were instrumental in forcing a vote in the House of Representatives on Trump’s tariffs on Canada. Following the passage of that measure, Trump vowed political retribution against any Republican who opposed his tariff plans.
