Trump Vows New Tariffs After Supreme Court Blocks Economic Policy

President Donald Trump vowed Friday to impose a 10 percent tariff on all imports to the United States, following a Supreme Court ruling that struck down his administration’s use of emergency economic powers to justify broad tariffs. The 6-3 decision, delivered Friday, found that the 1977 International Emergency Economic Powers Act (IEEPA) does not authorize the president to impose tariffs.

The ruling represents a significant setback for Trump, who has consistently employed tariffs as a central tenet of his economic and foreign policy. He nominated two of the justices who voted against him in the case, a fact he addressed with sharp criticism. “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 told reporters, alleging without evidence that foreign interests influenced the decision.

Despite the rebuke, Trump asserted he would circumvent the ruling by invoking a separate, unspecified authority to implement the universal 10 percent tariff. “In order to protect our country, a president can actually charge more tariffs than I was charging in the past,” he stated, claiming the ruling ultimately expanded his power.

The Supreme Court’s decision does not affect existing sector-specific tariffs on steel, aluminum, and other goods previously imposed by the Trump administration. Ongoing government investigations that could lead to additional sector-specific tariffs also remain in progress, according to officials.

The court found that while Congress has explicitly granted the power to impose tariffs in other statutes, it did not do so within IEEPA. Chief Justice John Roberts, writing for the majority, stated that “IEEPA contains no reference to tariffs or duties.” The three liberal justices were joined by conservative justices in the ruling, upholding lower court decisions that deemed Trump’s tariffs imposed under IEEPA illegal.

Justice Brett Kavanaugh, along with Clarence Thomas and Samuel Alito, dissented from the majority opinion. Kavanaugh cautioned that the process of refunding tariffs already collected could be “a mess,” a point acknowledged during oral arguments.

Business groups reacted favorably to the ruling. The National Retail Federation hailed the decision as providing “much-needed certainty” for American businesses and manufacturers, and urged a swift process for refunding tariffs to importers. But, the extent to which importers will receive refunds remains uncertain and is expected to be subject to further litigation.

Economists estimate the loss of IEEPA tariff revenues for the US government could reach approximately $140 billion, according to Gregory Daco, chief economist at EY-Parthenon. Democratic leaders celebrated the ruling, with Senate Minority Leader Chuck Schumer calling it “a win for the wallets” of US consumers.

Senator Elizabeth Warren cautioned that there is currently no legal mechanism for consumers and many tiny businesses to recoup previously paid tariffs. Yale University’s Budget Lab estimates the average effective tariff rate will fall to 9.1 percent following the decision, down from 16.9 percent, but still the highest rate since 1946, excluding 2025.

The European Union stated it is reviewing the court’s decision and will maintain close contact with the Trump administration. Britain indicated it would collaborate with the United States to assess the impact on their ongoing trade negotiations, while Canada affirmed the ruling validated its position that Trump’s tariffs were “unjustified.” California Governor Gavin Newsom called for immediate refunds to Americans, demanding, “Every dollar unlawfully taken must be refunded immediately – with interest. Cough up!”