WASHINGTON: US President Donald Trump reacted angrily after the Supreme Court of the United States ruled that he does not have unilateral authority to impose sweeping tariffs on imports.
In a 6-3 decision, the court determined that Trump had overstepped his constitutional powers by setting broad global levies under emergency authority. The ruling significantly undercut the trade pressure his administration had used in negotiations with foreign governments over the past year.
Undeterred, Trump swiftly announced a new 10% tariff on nearly all imported goods, in addition to existing duties. He later formalised the move through a presidential proclamation, invoking legal provisions that allow tariffs of up to 15% for a maximum of 150 days — though the measure is expected to face immediate legal scrutiny.
Court Rejects Emergency Justification
The administration had argued that the International Emergency Economic Powers Act (IEEPA) granted the president wide discretion to impose tariffs during a declared national emergency. However, the court rejected that interpretation.
Chief Justice John Roberts, writing for the majority, cited the US Constitution’s explicit assignment of taxing authority to Congress. The opinion stressed that the president does not possess inherent power to impose tariffs during peacetime and noted that the United States is not engaged in a war with the nations affected by the levies.
The decision forced Trump to rescind the tariffs that were struck down, even as he simultaneously unveiled the new 10% duty. The White House said certain goods including critical minerals, metals, and energy products would be exempt.
Sharp Criticism of Justices
Speaking at the White House, Trump lashed out at members of the court, saying he was “ashamed” of certain justices. He alleged, without providing evidence, that foreign influence and political motives had shaped the ruling. According to Trump, the judgment weakened America’s negotiating power in global trade discussions.
Despite the setback, he insisted that alternative legal avenues remain available to pursue his trade agenda.
Markets and Trade Deals in Limbo
The ruling initially sparked a surge in US stock indexes, reflecting investor optimism that tariff uncertainty might ease. However, gains moderated as analysts warned that Trump’s rapid response could prolong instability in global markets.
The judgment also cast doubt on trade agreements negotiated under the threat of steep tariffs. Additionally, it raised questions about the fate of roughly $175 billion collected from US importers under the contested measures.
US Treasury Secretary Scott Bessent acknowledged the mixed implications of the court’s decision. Speaking on Fox News’ “The Will Cain Show,” he suggested that while the ruling removed one source of presidential leverage, it may push the administration toward more aggressive albeit indirect strategies.
Renewed Economic Uncertainty
After a year marked by abrupt tariff announcements that rattled global markets, economists say the court’s decision and Trump’s counteraction have revived uncertainty.
Varg Folkman of the European Policy Centre warned that governments and investors alike are now left trying to anticipate Washington’s next move, prolonging volatility in international trade.
While the Supreme Court’s ruling curbed presidential authority in one arena, Trump’s swift retaliation suggests the global trade battle is far from over.
