- Trump signs signs that an executive order repealing lowered tariffs.
- Chairman introduces a new 10% tariff on imports from all countries.
- Investors lament new dose of uncertainty.
US President Donald Trump reacted with fury to Friday’s Supreme Court ruling that he lacked the power to unilaterally set tariffs on imports, condemning individual judges as he vowed to continue a global trade war that has kept the world on edge for a year.
Saying he was undeterred by what he repeatedly called a ridiculous ruling, Trump announced immediate new tariffs of 10% on imports from all countries, on top of all existing tariffs, and then issued a proclamation putting them into effect. The law allows him to impose a charge of up to 15% for 150 days, although that could face legal challenges.
The court’s landmark 6-3 ruling changed the influence Trump and his trade envoys have had over foreign governments at negotiating tables to reshape diplomatic relations and global markets.
The ruling sent U.S. stock indexes briefly higher before ending modestly higher as analysts warned of renewed confusion in global markets as they await Trump’s next move.
Hours after the ruling, Trump signed an executive order lifting the tariffs struck down by the court, and he also issued a proclamation imposing a 10% tariff on most goods imported into the United States for 150 days and providing exemptions for certain goods, including critical minerals, metals and energy products, the White House said.
Trade agreements, turnover on the line
The ruling called into question the trade deals Trump’s envoys have negotiated in recent months under the threat of high tariffs. That left open the fate of the $175 billion Trump has collected from American importers under what the court said was his misreading of the law.
“I am ashamed of certain members of the court, absolutely ashamed, for not having the courage to do what is right for our country,” Trump told reporters at the White House, complaining that foreign countries were ecstatic and “dancing in the street.”
He insinuated, without evidence, that the majority of the Court bowed to foreign influence: “They are very unpatriotic and disloyal to our Constitution. It is my opinion that the Court has been influenced by foreign interests and a political movement far less than people would ever believe.”
Since returning to the White House 13 months ago, Trump has said he had what the court summarized as the “extraordinary power to unilaterally impose tariffs of unlimited quantity, duration, and scope.” Citing a national emergency, he said the International Emergency Economic Powers Act (IEEPA) meant he could set tariffs however he chose.
The court justified its opinion, which was written by Chief Justice John Roberts, with a quote from the United States Constitution: “Congress shall have power to lay and collect taxes, duties, imposts, and excises.”
The Trump administration’s argument that it had identified a war-like emergency to justify a loophole did not convince the court.
“The government thus concedes, as it must, that the president enjoys no inherent authority to impose tariffs in peacetime,” Roberts wrote.
“And it does not defend the challenged tariffs as an exercise of the president’s war-making powers. After all, the United States is not at war with every nation in the world.”
Despite the court’s bluntness in ruling that the president had exceeded his authority, Trump told reporters, “It’s ridiculous, but it’s OK because we have other ways, many other ways.”
Economic uncertainty is increasing
After a year of Trump’s often ad hoc tariff announcements roiling markets and the global economy, the ruling and Trump’s response reintroduced a great deal of uncertainty that economists, investors and policymakers had hoped was in hindsight.
“I think it will just bring in a new period of high uncertainty in world trade as everyone tries to figure out what the US customs policy will be going forward,” said Varg Folkman, an analyst at the European Policy Center think tank.
US Treasury Secretary Scott Bessent said the court’s ruling could have mixed results.
“The Supreme Court has taken away the influence of the president, but in a way they’ve made the influence that he has more draconian because they agreed that he has the right to a full embargo,” Bessent told “The Will Cain Show” on Fox News.
“We will get back to the same level of tariffs for the countries. It will just be in a less direct and slightly more complicated way,” he said.
In announcing his new temporary 10% tariff, Trump became the first president to invoke Section 122 of the Trade Act of 1974, which allows the president to levy tariffs of up to 15% for up to 150 days to address “fundamental international payment problems.” It can also cause legal challenges. Such rates may be extended only with the authorization of Congress.
