Supreme Court Stops Trump Tariffs; President Plans New 10% Tax

The Supreme Court stopped President Trump's tariffs. He plans to put a new 10% tax on global goods. This is a big change for trade.
By Newsroom | Politics, Business |

On Friday, the Supreme Court issued a significant ruling, stopping President Donald Trump's wide-ranging tariffs on global goods. The court decided, in a 6-3 vote, that Trump had overstepped his authority by using an emergency powers law to impose these new taxes. This decision marks a notable setback for the economic policies the president has championed. Following the ruling, Trump publicly expressed strong disapproval of the Supreme Court's action and announced plans to implement a new 10% global tariff under a different trade law to recover lost revenue.

Context and Timeline

The Supreme Court's decision on Friday struck down tariffs that President Trump had put in place using the International Emergency Economic Powers Act (IEEPA). This law had not been used by any president before Trump to impose tariffs. The ruling limits the executive branch's ability to unilaterally enact such trade measures.

  • Presidential Action: President Trump had used an executive order to enact these tariffs.

  • Legal Challenge: The Supreme Court reviewed the legality of these tariffs.

  • Court Ruling: On Friday, the Supreme Court ruled 6-3 against the tariffs, stating they were unlawful.

  • Presidential Response: President Trump criticized the court's decision and declared his intention to introduce a new 10% global tariff using other legal means.

Key Players and Reactions

The Supreme Court's decision involved six justices, with three dissenting. President Trump was a central figure, having initiated the tariffs and reacting strongly to their invalidation. Members of Congress also offered varying perspectives.

  • President Donald Trump: Described the ruling as "deeply disappointing" and accused some justices of lacking courage. He pledged to implement a new tariff.

  • Supreme Court Justices: The 6-3 decision reflects a division among the justices.

  • Congressional Figures: Some Republican lawmakers welcomed the decision, seeing it as a necessary rebalancing of power. Senator Patty Murray issued a statement supporting the ruling.

  • Governors: Governor Jeff Landry was present during a meeting with President Trump when the ruling was announced.

The Supreme Court's Decision

The core of the Supreme Court's ruling was that President Trump's use of the International Emergency Economic Powers Act (IEEPA) to impose tariffs was an unauthorized overreach of executive power.

  • Legal Basis: The court found that IEEPA was not the proper legal instrument for the president to implement these broad tariffs.

  • Congressional Authority: The decision implies a stronger role for Congress in matters of trade taxation.

  • Precedent: This is the first time a president has used IEEPA to enact tariffs, and the ruling sets a new precedent.

President Trump's Response and Future Plans

Following the court's verdict, President Trump made it clear that he intended to proceed with new trade measures.

Read More: Tamil Nadu CM Stalin Says Tamil Language Works Alone on Mother Language Day 2026

  • Public Criticism: He openly criticized the Supreme Court's decision.

  • New Tariff Announcement: Trump stated that a new 10% global tariff would be implemented to compensate for the revenue loss.

  • Alternative Legal Avenues: He indicated plans to use different trade laws to enact these new measures, suggesting potential reliance on provisions within the Trade Expansion Act for temporary tariffs.

While the focus has been on the tariff ruling, related legislative activities are also underway. House Republicans have been working on a significant tax breaks package, a priority for President Trump.

  • Tax Bill Progress: House Republicans are pushing to vote on a multi-trillion-dollar tax package.

  • Budgetary Concerns: A new report suggests that this tax cut bill could increase the deficit.

  • Campaign Promises: Some provisions in the tax bill align with President Trump's campaign pledges.

Expert Analysis

Legal scholars and political analysts have been dissecting the implications of the Supreme Court's decision.

  • A GOP Congressman who voted to impeach Trump commented that the Supreme Court's decision "rightly takes back power from the executive branch on tariffs." This suggests a viewpoint that the ruling restores a balance of power between the branches of government.

  • Senator Patty Murray's "sharply worded statement" in welcome of the ruling indicates a strong political stance against the president's unilateral tariff actions.

  • The detail that Trump said he "doesn’t need to" ask Congress for action highlights a direct challenge to the legislative branch's role.

Conclusion and Implications

The Supreme Court's decisive ruling against President Trump's tariffs has significant implications for executive authority in trade policy. It limits the president's ability to unilaterally impose broad tariffs, emphasizing the need for congressional involvement or alternative legal frameworks. President Trump's immediate response—criticizing the court and vowing to implement new tariffs under different legal pretenses—indicates a continued executive focus on using trade as a policy tool. Meanwhile, legislative efforts by House Republicans on tax reform are proceeding concurrently, underscoring a busy period for economic policy discussions.

Read More: Supreme Court Ruling on Tariffs: Businesses May Get Billions Back, But How?

The core findings are:

  • Supreme Court Ruling: The court declared President Trump's tariffs, imposed via IEEPA, unlawful.

  • Executive Authority Limited: The decision restricts the president's power to enact broad tariffs without clearer congressional authorization.

  • President's Reaction: Trump condemned the ruling and pledged to introduce a new 10% global tariff using other laws.

  • Congressional Context: House Republicans are advancing a major tax bill, which has its own fiscal implications.

The situation raises questions about how the administration will implement its proposed new tariffs and the potential for further legal challenges or congressional responses. The precise legal mechanisms for the planned new tariffs remain to be seen, as does the extent of congressional engagement or opposition.

Sources

Frequently Asked Questions

Q: Why did the Supreme Court stop President Trump's tariffs?
The Supreme Court ruled 6-3 that President Trump used emergency powers incorrectly to put tariffs on global goods. They said he went beyond his authority.
Q: What did President Trump say about the Supreme Court's decision?
President Trump said he was very unhappy with the court's choice. He called it disappointing and said he would try to put new tariffs in place.
Q: Will President Trump still put new tariffs on goods?
Yes, President Trump said he plans to put a new 10% tariff on global goods. He said he will use a different trade law to do this to get money back.
Q: What does this mean for people and businesses?
The court's decision means the president has less power to put tariffs on his own. It might mean changes in the cost of imported goods. The new 10% tariff could also affect prices.
Q: Are there other big government plans happening now?
Yes, House Republicans are trying to pass a big tax cut bill. Some reports say this bill could make the country's debt bigger.