AT A GLANCE
• The U.S. Supreme Court ruled 6 to 3 that Donald Trump exceeded his authority when he imposed sweeping global tariffs under emergency powers.
• The Court said the International Emergency Economic Powers Act does not give presidents broad authority to impose across the board tariffs, a power reserved for Congress.
• Despite the ruling, Trump announced he will pursue a new global 10 percent tariff under a different statute that limits tariffs to 150 days.
• The Treasury has collected more than $133 billion dollars from the tariffs, with the Congressional Budget Office estimating a potential 3 trillion dollar economic impact over the next decade.
Supreme Court Shuts Down Trump’s Emergency Tariffs, He Announces to Impose Global 10% Percent Tariff Anyways
In a major decision limiting presidential authority, the U.S. Supreme Court ruled 6–3 that former President Donald Trump exceeded his power when he imposed sweeping global tariffs under a national emergency statute.
Trump responded forcefully, criticizing the decision and suggesting he would explore alternative statutory paths to maintain tariff pressure on foreign trading partners.
Furious about the defeat, Trump said he will impose a global 10% tariff as an alternative while pressing his trade policies by other means. The new tariffs would come under a law that restricts them to 150 days.
He made that announcement after lashing out at the Supreme Court for striking down much of his sweeping tariff infrastructure as an illegal use of emergency power. Trump said he was “absolutely ashamed” of justices who voted to strike down his tariffs and called the ruling “deeply disappointing.”
“Their decision is incorrect,” he said. “But it doesn’t matter because we have very powerful alternatives.”
The case centered on Trump’s use of the International Emergency Economic Powers Act (IEEPA), a law historically used to respond to foreign threats. The justices determined that the statute does not grant presidents broad authority to impose tariffs — a power the Constitution assigns to Congress.
Writing for the majority, the court emphasized that taxation and trade duties fall squarely within legislative authority. While presidents may act in defined emergency situations, the court ruled that Trump’s across-the-board tariffs stretched beyond what Congress authorized.
Two conservative justices joined the majority, underscoring the constitutional grounding of the ruling rather than a strictly partisan divide.
Political and Global Reactions
Democrats called the ruling a victory for congressional authority. Republican responses were mixed, with some defending Trump’s approach and others cautioning that new tariff plans could trigger additional legal fights.
Internationally, trading partners signaled cautious relief, though narrower tariffs could still keep trade tensions alive.
As of December, federal data shows that the Treasury Department had collected more than $133 billion from the tariffs. The tariffs wereestimated to have an economic impact of some $3 trillion over the next decade, according to the Congressional Budget Office.
Attention now shifts to whether Congress clarifies presidential trade powers, whether alternative tariffs survive legal scrutiny, and whether businesses will recover billions already paid.
